How to Open an NRI Trading Account in India?

Experience the all-new Kotak Netbanking
Simpler, smarter & more intuitive than ever before
Experience the all-new Kotak Netbanking Lite
Simpler, smarter & more intuitive than ever before. Now accessible on your mobile phone!
Related Information
Non-resident Indians, People of Indian origin, seafarers and government officials who are posted abroad are eligible to apply for an NRE/NRO bank account.
You need a minimum amount of Rs. 10,000 or its foreign equivalent to open a Kotak NRO account. Account holders are required to maintain a monthly balance of Rs. 10,000.
Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
Opening a trading account in India as an NRI may seem daunting due to multiple regulators, extensive paperwork and compliance requirements. However, once you begin—the process typically takes just 3-4 weeks to complete. From that point onward, you gain access to one of the world’s most dynamic and high-performing markets.
This guide outlines exactly what to do, which documents you need, and how much it costs—so you can begin trading in India & turn your investment aspirations into action.
Table of Content:
Can NRIs Open Trading and Demat Accounts in India?
Yes, and it’s backed by clear RBI mandates. NRIs and OCIs can invest in Indian stocks, mutual funds, bonds, and more, subject to FEMA and SEBI regulations.
These accounts enable NRIs to invest in Indian equities, bonds, and other securities; however, the process and requirements differ from those applicable to resident Indians.
Investments can be repatriable or non-repatriable, depending on the source of funds and account type.
Key Benefits
Types of NRI Accounts
Used for investments on a repatriable basis (funds can be sent abroad). Requires Portfolio Investment Scheme (PIS) approval from RBI.
Used for investments on a non-repatriable basis (funds stay in India).
Regulatory Requirements
Ready to start your investment journey? Open your NRI trading account through Kotak's seamless digital process.
Start here
Step-by-Step Account Opening Process
Here's your step-by-step roadmap to set everything up:
Note: Always refer to the latest updates from the RBI and SEBI, as regulations and processes are periodically revised to improve compliance and investor convenience.
KYC Requirements: Your Document Checklist
Getting your KYC (Know Your Customer) right is crucial—SEBI mandates specific KYC requirements for opening demat accounts, and it's more detailed for NRIs than for resident Indians:
Document Type
Examples/Details
Identity Proof
Passport
NRI Status Proof
Visa, Work Permit, OCI/PIO card
Overseas Address
Utility bill, bank statement, rental agreement, license
Indian Address
Passport, voter ID, utility bill, bank statement
Bank Proof
Cancelled cheque, account statement (NRE/NRO)
Photos
Latest Passport-sized photographs
PIS Approval
RBI PIS letter
Attestation Requirements
Special Notes
Submit a copy of the OCI/PIO card if your place of birth is not India.
Only NRO account holders can trade in derivatives, subject to additional documentation.
NOTE: Always check with your selected bank or broker for any additional or updated requirements, as documentation norms may be revised periodically to align with regulatory updates
Trading Rules and Restrictions for NRIs
NRIs can trade in India, within specific restrictions. Understanding these rules helps you avoid costly compliance violations and invest strategically:
Equity Trading
All trades must result in actual delivery of shares.
NRIs cannot sell shares they do not own.
Not permitted for NRE-PIS accounts.
NRIs may trade in futures and options only through NRO accounts. PAN is sufficient for compliance.
NRIs are prohibited from trading in currency or commodity derivatives.
Investment Limits
Shareholding Cap:
Sectoral Restrictions:
Compliance
Note: Always consult the latest official notifications from RBI and SEBI for any updates or changes in rules before investing or trading.
Did you know?
Your investment route can be repatriable (you can move your profits/money back overseas) or non-repatriable (funds remain in India and repatriation is capped annually). This depends on whether you're investing through an NRE or NRO account.
Common Charges and Maintenance Costs for NRI Trading & Demat Accounts
These costs directly affect your net returns, so understanding what you are paying prevents any surprise fees that might eat into your profits. Here's the complete cost breakdown to help you choose the most profitable option:
Types of Charges
One-time fee to open NRI trading or demat accounts, some may offer free as a promotional benefit.
An annual fee is levied to maintain the demat account.
For each debit (sale) or credit (purchase) transaction in the demat account.
Charged as a percentage of the transaction value.
Reporting fee per transaction.
Conclusion: Your Investment Journey Starts Here
To open a trading demat account as an NRI, you need: NRE/NRO bank account, PAN card, PIS permission, demat account, and KYC documents. The entire setup typically takes 3-4 weeks.
You now have all the information needed to open your NRI trading account and access India's high-growth investment opportunities.
Once established, you can invest in India's stock market.
While the setup requires effort, the long-term wealth creation potential makes it worthwhile.
Ready to begin? Our experienced team has helped thousands of NRIs navigate this process successfully. Contact our NRI support team or speak with a relationship manager today.
You have already rated this article
OK