Are there any trading restrictions for NRIs?
NRIs can trade in both Equity delivery and Futures and Options. However, to trade futures and options, the NRI customer must appoint a custodian and get a 'Custodian Participant' (CP) code.
Zerodha has a tie-up with ORBIS for providing custodial services. An NRI client may contact us and we would help the client for enabling a Custodian Participant code.
Zerodha allows an NRI to invest in mutual funds but only to NON-PIS customer(USA and Canada NRIs are not allowed to invest in Mutual funds)
Intraday trading on equities/stocks is not allowed. Currency or commodity trading is not allowed either. However, Intraday trading on futures and options contracts is allowed.(Only through CP code)
Other things to note:
- By mapping an NRE account, you can only trade in the Equity segment. You won’t be able to trade in futures and options segments if you’re mapping an NRE account.
- By mapping an NRO account, you could either trade in equity or derivative segment (Futures or Options)
- You can also map both the accounts i.e NRE and NRO , in such case you need to send 2 applications for opening the account.