Can NRI do Intraday Trading in India? ( NRI’s Guide )

As you also that NRI do the trading in India.

Like in real estate, mutual funds, equities, government securities and many instruments.

But, the procedure for the NRI is different as they need to open different accounts in Indian Banks.

According to their comfort, they choose the best investment options to make their investment in.

You can also read our blog on “NRI Investment Options” that will give you brief about their investment options with their limitations in the investment in India.

Under this article on “Can NRI do Intraday Trading in India?” you will get answer about their trading in intraday.

But the thing is NRI can’t do the intraday trading in India.

They can trade in Future’s and Option’s market but not in intraday trading.

As the RBI, do not allow or do not give the permission to the NRI’s to do the intraday trading in India.

NRI’s can only trade on the delivery trades in Indian Stock Market.

For NRI’s the STBT, BTST trading or the short selling is prohibited in Indian Market.

Only in equities the NRI are allowed to do the trading but not on intraday trading, commodities and in currency derivatives these are closed for NRI’s.

But one can also trade from abroad if they some family member or some relative that resides in India so that they can trade on behalf of them.

Well, in BSE some broker still provides the facility to the NRI to do trading in Futures and Options segment but not in Intraday Trading.

They need to get the Custodial Participant (CP) Code for doing their trading in Futures and options market.

NRI’s can trade in F&O market of the exchange out of the rupee funds in India that too on a non-repatriate basis.

But for the NRI’S they have many investment options left with them in Indian Stock Market.

NRI’s only need to open the Demat account in Indian banks and not the trading account as trading account is only for the intraday trader and NRI’s are not supposed to do an intraday trading.

Options available for NRI to make investment in India

  1. Fixed Deposits
  2. Equities
  3. Mutual Funds
  4. Government Securities
  5. National Pension Schemes
  6. Real Estate
  7. Initial Public Offering

There are many more options remains with the NRI to make their investment in India.

There are many restrictions to the NRI for making an investment in India.

There are different accounts that they can open in any one bank in India so that from that they can make their investment in India, they are

  • Non-Resident Ordinary Account (NRO)
  • Non-Resident External Account (NRE)
  • Foreign Currency Non-Resident (FCNR)

They are only allowed to invest only 5% of their paid up capital of the specific company.

NRI’s account are controlled by both the Securities Exchange Board of India (SEBI) and Reserve Bank of India (RBI).

This was all about the NRI investment in the Indian Stock Market and also the rules and regulations restrict the NRI to do the intraday trading in India.

Conclusions

On this article on “Can NRI do Intraday Trading in India?” this comprise about the answer that NRI are not allowed to do the intraday trading in India. As the RBI do not allow them to do so and they allowed them to do their trading in F&O market with some restrictions too and it is only allowed in Bombay Stock Exchange offered by some of the brokers not by everyone.

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Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.