NRIs can trade or invest in equity delivery, convertible debentures, convertible preference shares, warrants, etc., on a non-repatriation basis by using their NRO non-PIS accounts. However, commodity and currency trading is not permitted in an NRO non-PIS trading account. NRO Non-PIS trading account offers many other benefits described in this article.
What is an NRO Non-PIS account?
An NRO Non-PIS Demat and trading account is opened by NRIs who would like to invest their earnings from India in Indian stock markets. It is the most convenient trading account for NRI investment in India and is treated as a resident account in terms of compliances. This is the only account that allows NRIs to trade in intraday and F&O trading.
When investing in Indian markets, NRIs must know the difference between NRI PIS and Non-PIS account.
- NRIs don’t need a PIS permission letter to trade or invest using this account and transactions are not reported to RBI.
- No reporting and other charges levied by banks.
- Trading process will be similar to that of a standard resident account.
- There is no limit on NRI investment via the NRO Non-PIS route.
- No need to open an NRO account with any specific bank, the account with any bank can be mapped.
How to open NRO Non-PIS trading account
An NRO Non-PIS trading account can be opened online in just a day. While the account opening process may slightly vary from broker to broker, once you create a ticket online, the broker’s team will get in touch with you.
Requirements for NRO Non-PIS trading account opening
Following are the documents you will need to open an NRO Non-PIS trading account:
- Non-PIS account opening form
- PAN number
- Overseas address proof
- An attested copy of passport
- Indian address proof
- NRO canceled cheque leaf
- Passport size photograph
- FEMA declaration
- FATCA/ CRS declaration
- Nominee ID proof (if any)
Benefits of NRO Non-PIS trading account
Non-Resident customers can enjoy the following benefits by opening an NRO Non-PIS trading account:
- NRO Non-PIS trading account can be opened online in one day.
- Saves multiple charges including AMC charges and reporting fee levied by banks.
- NRIs can invest in India without any limits and enjoy trading experience similar to resident Indians.
- Trading in equity and F&O through a CP code is permitted.
- You can open an NRO Non-PIS trading account with any bank.
- Less brokerages, starting from as low as Rs. 100 per order.
- You can invest in NRI mutual funds across AMCs (except NRIs based in the US and Canada).
- No PIS bank account means no charges.
- You can contact the broker for trades, funds and taxation.
Trading and investment
NRIs having a Non-PIS account can trade or invest in segments like:
- Equity Cash (Intraday & Delivery)
- Equity Futures and options (F&O)
- Only delivery based trading is permitted
- Non intraday trading on equity/ stocks is permitted
- CP code is used to settle the NRI F&O trades
- NRI customers don’t need a PIS bank account when trading using this account.
- Banks are not involved in transactions done using this account.
- Currency and commodity trading not allowed in an NRO Non-PIS account.
Living away from India, it is not easy for NRIs to open an NRI Trading account (NRO Non-PIS or PIS account) or Demat account and make the right decision about investment in India. At SBNRI, we understand that there are many obstacles faced by NRIs while investing in India. You can download SBNRI App to connect with our experts and get end-to-end assistance related to an NRI investment.