What is the trading process and rules for NRI accounts?
The trading process flow for NRI accounts is as below:
Funds have to be allocated from your NRE/NRO bank account to your PIS. Your bank will then inform Zerodha on how much funds you have allocated.
This is then updated to your trading account. When you make a stock purchase, the brokerage firm sends the buy contract note at the end of the day to the bank. The bank, in turn, debits your PIS account to that extent and credits the brokerage firm on T+1 (one working day after transaction day).
Similarly, when you sell some stocks from your DEMAT, the brokerage firm sends a sell contract note at the end of the day to the bank and also credits your PIS bank account with the proceeds from the sale on T+2 (two working days after transaction day).
Note that two separate contract notes are sent for all your buy transactions and sell transactions at the end of every day. The net amount credited/debited to your PIS will be including all charges that appear in the contract note.
For Futures & Options:
NRI investors may trade in the futures & options segment of the exchange through an NRO account.
As an NRI, you are required to get a Custodial Participant code (CP code). We at Zerodha have tied up with ORBIS for custodial business, and would help the NRI client receive a CP code from ORBIS.
We would forward any request of a client to ORBIS for a Custodial Participant code. Once you have the Custodial Participant code, all funds for trading Futures & Options will sit with the custodian, similar to how all your funds for trading stocks sit with your bank.