Can NRIs invest in Indian stocks?
Yes. A Non-Resident Indian (NRI) can invest in Indian shares, mutual funds, IPOs and bonds — but through a dedicated NRI route governed by FEMA and the RBI, alongside SEBI’s market rules. The core idea: your Indian investments are funded from, and settled into, designated NRI bank accounts, and equity is bought on a delivery basis (intraday/day-trading in the cash segment is not permitted for NRIs).
The accounts you need
- NRE or NRO bank account — your funding and payout account.
- PIS (Portfolio Investment Scheme) permission — an RBI-approved designated bank account, required to buy and sell listed shares on the secondary market. Mutual funds, IPOs and bonds generally do not need PIS.
- NRI demat account — holds your securities (repatriable or non-repatriable, matching your bank account).
- NRI trading account — to place your orders.
They link together just like a resident account — the difference is the NRI KYC and the PIS layer for shares.
NRE vs NRO — repatriable or not
NRE (repatriable): funded from your overseas earnings; the money and gains can be freely sent back abroad. NRO (non-repatriable): for income earned in India such as rent or dividends; repatriation is capped (up to USD 1 million per financial year, subject to tax and paperwork). Many NRIs keep both.
What you can and cannot do
- Allowed: delivery-based equity, mutual funds (via NRE/NRO — no PIS needed), IPOs via ASBA, ETFs, bonds and NCDs.
- Not allowed: intraday and BTST in the cash segment.
- Conditional: F&O is permitted only through a non-PIS NRO account with a registered custodian and a CP code — not everyone opts for it.
- Some intermediaries cannot onboard NRIs based in the USA and Canada due to FATCA/CRS — always check eligibility first.
Documents & KYC
- PAN card
- Passport, plus visa / OCI / PIO card
- Overseas address proof and Indian address proof
- NRE/NRO bank details and the PIS permission letter (for shares)
- Recent photograph and signature
- FATCA/CRS self-declaration
NRI KYC runs through the KRA framework; document attestation (by an Indian embassy, notary or authorised official) may be required.
Tax & repatriation, in brief
NRIs are taxed on Indian capital gains, and brokers and AMCs deduct TDS at source at the applicable rates — short-term and long-term rates differ by asset class. India’s DTAA treaties can reduce double taxation. This is general information, not tax advice — please consult a qualified tax advisor for your own situation.
How PCJ helps NRIs
The NRI route has more moving parts than a resident account, so the simplest path is a guided one. A dedicated PCJ Relationship Manager walks you through the NRE/NRO and PIS setup, the demat and trading accounts, and the paperwork — end to end. Request a call back and we’ll take it from there.
FAQs
No. Mutual funds can be bought directly through your NRE or NRO account. PIS permission is only needed to buy and sell listed shares on the secondary market.
No. NRIs trade equity on a delivery basis only — intraday and BTST in the cash segment are not permitted under the NRI route.
You must inform your broker and re-designate/convert your holdings to an NRO demat account. You cannot continue trading on a resident account once you are an NRI.
Some intermediaries restrict US and Canada-based NRIs due to FATCA/CRS obligations. Confirm eligibility before you apply — PCJ’s team will tell you what is possible for your country of residence.
Yes, through ASBA using your NRE or NRO bank account, on a repatriable or non-repatriable basis to match the account you use.
Educational content for general awareness only — not investment, trading or tax advice. Investments in securities market are subject to market risks; read all related documents carefully. Rules and rates are indicative for FY 2025-26 and may change.