How can NRI open a share trading account?
NRIs can opt for a 3-in-1 account that consists of 3 separate accounts that can be opened together. A share trading account is a combination of these 3 accounts.
These accounts include:
- A Bank Account (a normal bank account where your money resides),
- A Trading Account (a share broker account which allows you to trade in equity, F&O etc. segments) and,
- A Demat account (it holds the equity shares purchased by you)
The process to open the 3 in 1 account is simple
- Visit the bank website (for example ICICI) that provides the 3 in 1 account facility
- Enter your details and download the application form
- Fill the form and sign it. Attach the required documents and send it to the mentioned address. The required documents are:
- Copy of valid passport (pages with your name, address, date of birth, date and place of issue, expiry date, photograph, address, signature)
- Proof of NRI status (by way of valid Employment/Residence Visa copy or Work/Residence Permit)
- Copy of Indian PAN card
- Proof of Overseas and Indian Address
- Recent passport size colour photograph
How can NRI buy shares in India?
NRIs can buy shares by investing their money into stocks listed on the National Stock Exchange of India Ltd. (NSE). To be eligible to invest into stocks, NRIs need to be a part of the Portfolio Investment Scheme* (PIS) that will allow them to trade stocks. *(Portfolio Investment Scheme (PIS): Through this scheme of the Reserve Bank of India, NRIs can purchase and sell shares and debentures of Indian companies on a recognized stock exchange)
The PIS Accounts can be opened at major banks in India such as ICICI, HDFC, YES Bank, Federal Bank, Axis Bank etc. or through third party providers such as Zerodha to ease out your investments in shares. Through this account, NRIs can buy shares in India.
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