A Quick Guide to Open a Trading Account in India for NRIs

Indian financial markets are continuously evolving, with immense opportunities for new investors. Besides Indian residents, NRIs (Non-Resident Indians) have also been trying to take advantage of the evolving financial markets in the country. For the same rationale, many NRIs have applied for trading accounts in India. FDI (Foreign Direct Investment) tends to increase when more and more NRIs invest in the Indian stock market. In 2021, FDI in India increased by 60%, a positive sign for the country’s economy. The government has also taken several measures to increase NRI investments in the Indian stock market. Stockbrokers also facilitate NRIs to open an online trading account in India

Read on to understand the process for opening a trading account in India as an NRI 

What exactly is an NRI trading account?

With a regular trading account, Indian residents can invest in the stock market. However, you cannot invest in the Indian stock market as an NRI. To invest in the Indian stock market, you need a special NRI trading account. With an NRI trading account, you can access Indian stock exchanges like BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). In addition, you can buy shares of publicly listed companies with an NRI trading account, irrespective of the location. Besides investing in shares, you can trade other financial securities with an NRI trading account. The working of an NRI trading account is similar to that of a regular trading account, as both facilitate the buying and selling of securities.

Most NRIs choose to open 3-in-1 trading accounts for better results. A 3-in-1 NRI account combines the bank, trading, and Demat accounts. Like a trading account, NRIs also require a Demat account to hold onto shares and invest in mutual funds. You can buy/sell securities with an NRI trading account. You cannot hold onto them, though. You will require an NRI Demat account to store securities in digital format. Some stockbrokers also allow NRIs to open a 2-in-1 trading account. A 2-in-1 trading account will link an NRI Demat with an NRI trading account.

Have you made the trading brokerage charges comparison? Are you ready to open an NRI account and begin trading in the Indian stock market? Before selecting a stockbroker, deciding on the type of NRI Demat account is essential. Consider the right type since the NRI Demat and your trading accounts are linked together. You can choose a repatriable NRI Demat account supporting foreign fund transfers. You can transfer all the earnings to a foreign bank account with a repatriable NRI Demat account. On the other hand, a non-repatriable Demat account does not support foreign fund transfers.

Open an NRI trading account online

The first step is to apply for a PIS (Portfolio Investment Scheme) account. Some financial institutions allow you to open a non-PIS account and initiate the Demat account opening process. Once you have an authorised bank account, you can open an online trading account in India. You can connect with Religare Broking for more information on 3-in-1 trading accounts for NRIs 

In a nutshell

NRIs can benefit from the Indian stock market with an NRI trading account. Religare Broking is a trusted stockbroker that can help you open an NRI trading account in quick succession. Apply for your NRI trading account right away!

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