Can NRI Invest Indian stock market? How? Allowed or Not.

Get the details regarding Can NRI invest Indian stock market.

Who is a non-resident Indian (NRI)?

Non-Resident Indian (NRI) means a “person resident outside India” who is a citizen of India or is a person of Indian origin”[as per FEMA regulations].

Can NRI invest Indian stock market?

Yes, NRI can purchase shares or convertible debenture of an Indian Company through stock exchanges, under the portfolio investment scheme on repatriation & /or non-repatriation basis.

Can NRI/PIO invest or trade in other securities?

Yes, NRI/PIO can invest in other securities namely.
1.Dated Government securities (other than bearer securities) or
2.treasury bills.
3.Units of domestic mutual funds.
4.Bonds issued by a public sector undertaking (PSU) in India.
5.Shares in Public Sector Enterprises being disinvested by the
6.The government of India.

Are NRIs allowed to invest or trade in Exchange Traded Funds (ETFs)?

It is true NRIs are allowed to Invest in Exchange Traded Funds (ETFs). NRI can invest in ETFs both on repatriation as well as non-repatriation basis.

How can NRI invest in Indian stock market?

Ans As per Reserve Bank of India (RBI) guidelines, NRI who wishes to invest in shares in India through a stock exchange need to approach the designated branch of any authorized dealer (bank) authorized by reserve bank to administer the PIS (Portfolio Investment Scheme) to open a NRE (Non Resident External) /NRO (Non Resident Ordinary) account under the scheme for routing Investments.

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