Can NRIs invest in Indian Stocks/Share and Mutual funds schemes?


Non Resident Indians including PIO (person of India origin) holding PIO card and OCI (overseas citizens of India) can make investments in Indian Capital Market by opening up an online NRI Account.Under NRE [Non Resident (External) Rupee Account] accounts, funds can be repatriated here as funds under NRO [Ordinary Non Resident Rupee Account] accounts are non repatriable.
1. NRO Bank Account: Non-Resident (Ordinary): NRIs can also use this account to invest into Mutual Funds of India and IPOs on non-repatriable basis.2. NRE Bank Account: Non-Resident (External) Rupee Account: Can also be used by NRIs to invest in Indian Mutual Funds on repatriable basis.

NRIs can invest in both Primary Market and Secondary Market through a registered broker. These brokers offer wide range of services to ensure that NRIs feel at home while they take their investment decisions.

Things that NRIs can do:Online Trading (stocks & derivatives): Various brokers give you the access to tools that institutions and professionals use for trading in Capital Markets. Many of them provide an Online Trading platform that enables NRI’s to transact paperless trading in Equity and Derivatives segments. Such Online Trading System provides the most distinct utilities like Streaming Market Watch, Technical Analysis, AMO (After Market Order), Online Funds Transfer and NRI Online Helpdesk to enable you have a pleasant trading experience.

Offline Trading: Most of the brokers offer Online NRI Trading facility wherein the orders can be placed through telephone, Email, Chat or Fax communication.

Mutual Fund Investment:NRIs can invest in Indian mutual funds through registered mutual fund distributors and brokers. Some distributors also have to offer simplified process which is free of all paperwork. These distributors also provide its clients with the latest updates on the top Funds, NAV’s, New Fund Offers. They also provide performance report of various funds to ensure smart investments are made in Mutual Fund segment. 

Investment in Initial Public Offer (IPO): Paperless investment can be done by NRIs through selected Indian brokers, in the Primary Market ā€“ Initial Public Offering (IPO) Details of current IPO’s & forthcoming IPO’s, Performance of Past IPO’s, basis of allotment, etc are provided by them to enable clients make hassle free IPO investments. 

ESOP Trading: Few of the good brokerage houses offers unique value added service in the form of ESOP trading whereby NRIs can liquidate the Stock Option given by their Employers and remit abroad the sale proceeds or reinvest the same in the Secondary Market.

Dematerialization of shares bought in Primary Market

Most of the brokers would also assist the NRI clients in converting the physical share certificates to electronic form (Dmat form). The Holder of the shares has to just open a NRI Account and submit the Demat Request along with the certificates, and broker’s efficient and customer friendly NRI Desks takes care of all the other formalities.

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