NRI Trading Account

NRI trading in Indian stock exchanges is gradually increasing. It is happening because of the higher probability of returns in the Indian financial market. NRI investment in India has also increased the Foreign Direct Investment (FDI) up to 60% in 2021.

loading...

Investment Plans

Generate wealth Earn 1 Cr^# in maturity with Zero LTCG tax^¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
Compare & Choose 30+ Plans and 150+ Fund options

We are rated^~

7.7 Crore

Registered Consumer

50

Insurance Partners

4.2 Crore

Policies Sold

Top performing plans with High Returns^**

Invest ₹10K/month & Get ₹1 Crore^# on Maturity

Your Name

+91

Mobile Number

Your personal information is secure with us

By clicking on "View Plans" you agree to our Privacy Policy and Terms of use

Get Updates on WhatsApp

We are rated^~

7.7 Crore

Registered Consumer

50

Insurance Partners

4.2 Crore

Policies Sold

Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

To invest in Indian companies that are listed on the Indian stock market, NRIs need a trading account. They can open such accounts with the help of several Indian stockbrokers who provide NRI banking services. These services include a 3-in-1 NRI Trading Account, Zero AMC NRI Demat Account, Low Brokerage NRI plans, etc.

What Are NRI Trading Accounts?

An NRI trading account is an investment account that allows an NRI to trade in stock derivatives such as bonds, equities, etc. He/she can also invest in mutual funds listed in the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). These accounts are the medium to conduct investment transactions in India for NRIs. Without a trading account, an NRI will not be allowed to invest in the Indian share market. Similar to a trading account, he/she also has to open an NRI Demat account if he/she wants to invest in the Indian stock market. A Demat account would also let an NRI invest in mutual funds, ETFs, and convertible debentures.

Types of NRI Trading Accounts

NRI Trading Accounts are classified under two categories:

NRI 3-in-1 Accounts: An NRI 3-in-1 account combines 3 accounts. These accounts are the NRI Bank Account, NRI Trading Account, and NRI Demat Account. NRI 3-in-1 accounts are also known as NRI 4-in-1 accounts when brokers open two bank accounts. It allows seamless transactions as the three NRI accounts are combined. In India, 3-in-1 NRI accounts are offered by banks like ICICI Bank, HDFC Bank, SBI, Axis Bank, Yes Bank, etc.
NRI 2-in-1 Accounts: An NRI 2-in-1 account is a combination of an NRI Trading and an NRI Demat Account. To apply for a 2-in-1 account, NRIs have to open a Portfolio Investment Scheme (PIS), a Non-Residential External Account (NRE), and a Non-Resident Ordinary Account (NRO). An NRI 2-in-1 account is opened by brokers who do not have a banking license.

Types of NRI Demat Accounts

NRI Demat accounts are of two types:

NRE Demat Account: NRIs can open an NRE Demat account to invest in the Indian stock market. You can make investments on a repatriation basis which means that all your earnings from securities can be transferred abroad. An NRE Demat account is linked to your NRE bank account.
NRO Demat Account: NRIs can open an NRO Demat account to manage their funds in India. It is a non-repatriable Demat account that allows the partial transfer of the funds abroad. Only the principal amount of investment is repatriable after paying taxes. An NRO Demat account is linked to your NRO bank account.

What Are the Benefits Provided by an NRI Trading Account?

There are several benefits offered by an NRI trading account:

Investment in India: An NRI trading account enables NRIs to invest in India through mutual funds, stocks, equities, bonds, etc. All these investments are possible by opening a PIS Account which facilitates trading in the Indian financial market.
Higher Returns: The most attractive feature of the Indian financial market is the probability of high returns for NRI investments. NRIs earn more interest in India by investing in NRE Fixed Deposits and FCNR (B) deposits.
Sustained Earnings: NRIs can earn income from their assets in India in a sustained manner. Income from Indian sources such as rent and business can be earned even if you are not residing in India.
Zero Tax Liability: As an NRI, you do not have to pay taxes on the interest income earned on your NRE and FCNR (B) accounts as per the provisions of the Income Tax Act, 1961.
Independent of Fluctuations: An offline or online trading account for NRIs allows you to retain your foreign earning in its original currency. There is no need to convert your foreign earnings into INR. It makes it possible for you to avoid foreign currency exchange rate fluctuations.
Loans: In India, you have an option to get a loan against the money deposited in your NRI account. Indian authorized banks and financial institutions offer loans to NRIs, including fund-based and non-fund-based facilities.

Summing It Up

It is important to know about the best online trading account for NRIs before deciding upon one. An online trading account for NRI investors is mandatory to delve into the Indian stock market for investment and trading purposes.

FAQ's

Q. Who qualifies as an NRI as per the guidelines of the Government of India?

Ans. As per the Indian Government’s guidelines, an Indian citizen living outside India for a minimum of 183 days in a financial year qualifies as a Non-Resident Indian or NRI.
Q. What are the documents I need to submit for opening an NRI Trading and Demat Account in India?
Ans. You have to submit the following documents for opening an NRI trading and Demat account in India:
- Copy of your PAN Card
- Copy of the PIS account letter
- Copy of the Foreign Exchange Management Act, 1999 Declaration
- A Foreign Account Tax Compliance Act Declaration form
- A passport-sized photograph
- Proof of bank account
- Indian address proof
- Declaration of P.O. Box in your country of residence
- Overseas address proof
- Copy of Passport and Visa (in case of Indian Passport)
- Copy of Passport and Person of Indian Origin (PIO) Card (in case of foreign Passport)
Q. What kind of trade and investment is not permitted on my NRI Trading Account?

Ans. Your NRI trading account is not eligible to make investments and trading in Commodities Derivatives and Intraday Trading.
Q. What is the fixed deposit tenure provided by an NRE Account for NRIs?

Ans. The Fixed Deposit tenure under the NRE Account for NRIs lies between 1 to 3 years.
Q. Is it mandatory for me to provide a local Indian address for opening an NRI trading account?

Ans. Yes, you must produce a local Indian address and documentary proof for the same at the time of your NRI trading account registration. It is because the broker needs a correspondence address for your investment transactions.

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Past 10 Years' annualised returns as on 01-12-2024

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).