How can Non-Resident Indians (NRI) invest in the Indian capital market?
NRI clients can invest in Equity, and Portfolio Management Services (PMS) under the Portfolio Investment Scheme (PIS). Investment related procedures are carried out in accordance with the Foreign Exchange Management Act (FEMA).
NRIs are allowed to invest on a repatriation and/ or non-repatriation basis based on their savings bank account type:
A. Non-Resident External (NRE) Savings Bank Account- The money deposited in an NRE-SB account from the following sources can be used to invest in India under the NRE status:
- Foreign remittance
- Foreign currency deposits
- Credit of maturity proceeds from NRE Fixed Deposits (NREFD) or Foreign Currency Non-Resident (FCNR) deposits.
B. Non-Resident Ordinary (NRO) Savings Bank Account- An NRO-SB account is as good as a savings bank account of a resident individual. The money deposited in an NRO-SB account from the following sources can be used to invest in India under the NRO status:
- Foreign remittance
- Foreign currency deposits
- Credit of maturity proceeds from NRE Fixed Deposits (NREFD) or Foreign Currency Non-Resident (FCNR) deposits.
- Domestic sources.
* NRI (NRE & NRO) clients are not allowed to trade intraday.
* NRE clients are not allowed to trade in F&O and commodities.
* NRO clients are not allowed to trade in commodities.Still need help? Create Ticket
