Can NRI share trading in India?

Yes, NRIs (Non-Resident Indians) are allowed to trade in shares in India, subject to RBI and SEBI regulations.

The following are the key requirements for NRIs to trade in India:

1. Demat & Trading Account

NRIs must open:

• An NRI Demat account, and
• An NRI trading account with a SEBI-registered broker

Resident (regular) Demat accounts cannot be used after becoming an NRI.

2. Bank Account Requirement

NRIs need either:

• NRE account (repatriable), or
• NRO account (non-repatriable)

All trading transactions are routed through these accounts.

3. Investment Routes

NRIs can invest under:

• PIS (Portfolio Investment Scheme) – approval from RBI (handled by the bank)
• Non-PIS route – for certain investments like mutual funds and ETFs

4. What NRIs can trade

• Equity shares (delivery-based)
• IPO / FPO / Rights issues
• Mutual funds and ETFs
• Corporate bonds and NCDs

5. Restrictions

• Intraday equity trading is not allowed for NRIs
• Equity derivatives (F&O) are allowed only on a non-repatriation basis
• NRIs cannot trade in currency derivatives