NRI Trading


PSB Securities Limited offers trading and demat services for Non-Resident Indian (NRI) to invest shares of indian companies listed on stock exchanges using NRE bank account with repatriation facility, and to trade in derivative and currency segments using NRO bank account without repatriation benefits.

Company NRI desk assists customers in obtaining necessary Portfolio Investment Scheme (PIS) account permission from RBI through authorized dealer banks to invest in shares , and with custodians for trading in derivatives and currency segments in accordance with the terms and conditions specified under the Foreign Exchange Management Act (FEMA) in a seamless and hassle-free manner.

For investment in indian shares in secondary market through stock exchange , NRIs are required to open trading and demat account with SEBI registered stock broker and NRE Bank Account with RBI designated authorized dealer bank .

The company being a SEBI registered stock broker having trading memberships of NSE & BSE and depository participant with CDSL ,where NRIs can open trading and demat account with us and choose our preferred RBI designated authorised dealer bank M/s Indusind Bank, for banking relationship, by doing so the NRIs can invest in a seamless manner

Our preferred bank M/s Indusind Bank assist customers in taking PIS - Portfolio Investment Scheme , permission from RBI that is required for share investments by NRI with repatriation benefits.

Things to note:

NRI can have only one PIS account with one stock broker
PIS account permits NRIs to trade only in equity segment.
NRIs can only make delivery based transactions in equity Segment as per RBI guidelines.
NRIs cannot do Intra-day trading

Taxation

Short Term Capital Gains (STCG ) : If the period of holding is less than 1 year, TDS is deducted @ 17.94 % (Inclusive of surcharge and education cess)
Long Term Capital Gains (LTCG ): If the period of holding is more than 1 year ,TDS is deducted @ 11.96 % (Inclusive of surcharge and education cess) for gains in excess of Rs. 1 lakh. This provision is applicable from April 1, 2018.
Note : TDS is automatically deducted by the bank at the time of crediting the sale proceeds.

As per regulatory guidelines, NRIs are allowed to trade in derivatives segment (futures & options segment) of the exchange using NRO bank account in non repatriable basis, subject to the limits prescribed by SEBI.

NRIs has to obtain the custodial participant (CP) code with a clearing member for clearing and settlement of trades for trading on the derivatives segment of the exchange .

The company having tie -up with leading professional clearing member for custodial business who assigns the CP code to the NRI customer.

NRI Desk assists the investor for obtaining the CP code.


SEBI Vide Circular No.: SEBI / HO / MRD / DP / CIR / P / 2017 / 63, dated June 28, 2017 has permitted NRIs to participate in the exchange traded currency derivatives market to hedge the currency risk arising out of their investments in India under FEMA, 1999 from NRO account to the extent of investments made in debt, equity, dividend due and the balances held in NRE accounts.

To participate in Exchange traded currency derivative instruments , NRIs has to obtain NRI Participant (CP) code with a with a clearing member for clearing and settlement of trades. NRI desk assists customers in getting the necessary permissions


  • Doorstep pickup facility of account opening forms and speedy account opening process
  • Integrated 3 –in 1 account (Trading , Demat and Bank account )
  • Online Trading Facility with facility to trade in desktop, mobile or tablets
  • Dedicated NRI offline dealing desk
  • Dedicated Relationship manager
  • Market Competitive brokerage rates
  • 24 x 7 web account access facility for viewing account information
  • Robust processes in accordance with SEBI / RBI guidelines


If you are an NRI customer and would like to open a PIS account, please submit your contact details. We will get in touch with you. To submit your contact details, please click here.

Copy of PAN card
Colour Passport size photograph of investor
Document ensuring the status of entity
  • In case of an Indian Passport: Copy of valid passport with place of birth as India, Copy of Valid Visa
  • In case of Foreign Passport: Copy of Valid passport, Copy of PIO / OCI card.
Indian address proof
Overseas address proof – Copy of Driving License / Foreign Passport / Utility Bills / Bank Statement (not more than 2 months) / Notarized copy of rent agreement / Leave & License agreement / Sale Deed
PIS Permission Letter from the respective designated bank
Declaration of P.O. Box in residing country
FATCA Declaration Form
Copy of FEMA declaration

Note: Copy of PAN card, Passport, Power of Attorney and Foreign address proof to be notarized by Indian Embassy or any other competent authority like Consulate General / Notary Public / Any Court / Magistrate / Judge / Local Banker in the country where the NRI resides. The attesting authority should affix a “verified with original” stamp, name, designation, signature and date on the said documents
Note : All proofs must be self certified by the investor
minus 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.
minus Who is a 'person resident outside India'?
Under the Foreign Exchange Management Act, 1999 (FEMA), a person who is NOT a 'person resident in India', as defined under Section 2 (v) of the Act is considered as a 'person resident outside India'.
The most important change in definition (since FERA 1973) is that the citizenship of a person no longer has a bearing in determination of residential status.
minus Who is a 'person of Indian origin'?
'Person of Indian Origin' (PIO) means a citizen of any country other than Bangladesh or Pakistan,
a ) if he at any time held Indian passport;
b ) or he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955;
c )or the person is a spouse of an Indian citizen or a person referred to in sub-clause [a] or [b].
Investment by PIO in Indian Securities is treated the same as the investment by non-resident Indians and requires same approvals and enjoys the same exemptions.
minus What is Portfolio Investment Scheme?
Portfolio Investment Scheme (PIS) is a scheme of Reserve Bank of India defined in Schedule 3 of Foreign Exchange Management Act 2000. As per the scheme the NRIs and OCBs can purchase and sell shares and convertible debentures of Indian Companies on a recognised stock exchange by routing such purchase/sale transactions through their account with a Designated Bank Branch. (With effect from 29/11/2001 RBI has restricted OCBs from making fresh purchases. They can however continue their existing holdings or sell off the same).
minus Can an investment made under PIS be repatriated?
The repatriation of the sale proceeds are allowed if the original purchase was made on repatriation basis and the sources of investment were from NRE/FCNR account or by means of remittance from abroad. If the original purchase was made from NRO a/c then the sale proceeds are not repatriable.
minusCan an investor under PIS make an investment on repatriation basis as well as non-repatriation basis?
Yes. Investment can be made on repatriation as well as non-repatriation basis. However, the investor will have to open NRE account as well as NRO account with the Designated Bank. The sale proceeds of non-repatriable investment can be collected in NRO A/c only
minusDo NRIs who already have an account need to open another NRE/NRO account? Can the account be a joint account?
As per recent RBI guidelines, NRI should have a separate bank account exclusively for PIS purposes. Transactions relating to their personal banking as well as on account of transactions relating to shares acquired other than under PIS including IPOs should be routed in a separate bank account not linked to PIS. Account/s cannot be a joint account.
minusWhat is a Designated Bank branch?
Reserve bank of India has authorized few branches of each authorized dealer bank to conduct the business under portfolio investment scheme on behalf of NRIs.
NRI can select only one authorized dealer bank for the purpose of investments under portfolio investment scheme and route the transactions through the branch designated by the authorized dealer bank..
minus How many Designated Banks can an NRI appoint?
NRI can appoint only one Designated Bank for the purpose of routing the transactions under PIS.
minusDoes an NRI require PIS permission to purchase shares in the primary market (IPOs) on repatriable/non repatriable basis?
No, as an NRI you can purchase shares in the primary market on repatriable/non repatriable basis and application money can be paid through regular NRE SB /NRO SB Account or through inward remittance.
minusIf an NRI has existing portfolio purchased under IPO in the primary market both on repatriation and non-repatriation basis, does he still have to route the sales of such holding through the Designated Bank?
The shares/ acquired under IPO need not be routed through Designated Bank as this does not come under PIS. Such transactions, if routed through designated bank, should be done in a separate bank account not linked to PIS.
minusIs there any limit for purchase/sale of shares by an NRI in the secondary market?
Yes. NRI can purchase upto a maximum of five percent of the paid up capital of a company. For the purpose of this ceiling investment in repatriable and non-repatriable will be clubbed. In addition to above NRIs collectively can hold upto a maximum of 10% of such holding or any higher percentage so permitted in respect of any particular company. Shares acquired through primary market are excluded for the purpose of above limits.
minusHow does an NRI know whether a particular company is open for NRI investment? Is there any tax obligation?
RBI notifies a list of companies where the ceiling limit has reached and where no fresh purchases can be made. This list is called watch list. RBI also notifies a list called caution list notifying the names of companies whose NRI holdings has reached 2% below the ceiling limit. Any further purchases are allowed only by obtaining prior approval from RBI. Such approvals are issued by the RBI on first come first serve basis. The Watch and Caution list is available on the RBI Website. Please click here to refer the same. https://www.rbi.org.in/scripts/BS_FiiUSer.aspx
minusIs it mandatory to place the orders for purchase/sale of shares through the Designated Bank?
The orders need not be placed through the Designated Bank.It has to be placed with stock broker Further, the reporting of the transaction shall be done to the designated Bank on the same day of transaction along with original contract note by the stock broker. The stock broker needs to needs to ensure that the payment and receipt of funds in settlement of such trade has to be routed through the Designated Bank account only.
minusCan an NRI sell the shares purchased within the same settlement cycle?
No. NRI cannot sell without taking delivery of the shares/ purchased. Short selling is not permitted under PIS.
minus How does an NRI correct his / her position if the purchased shares are in excess of the prescribed limit, if any?
NRI will have to off load such portion of the holding, which is in excess of the prescribed limit.
minus At what frequency does an NRI need to report his transactions to the Designated Bank?
The contract note of NRI transaction details needs to submit to the Authorized Dealer Bank on daily basis to enable designated dealer banks to report the same to Reserve Bank of India
minus Is it mandatory to route the secondary market transactions through PIS designated account only?
Yes, It is mandatory for a NRI to route all secondary market transactions through his PIS designated account i.e. For all purchase / sell of stocks in secondary market only the PIS designated account should be debited / credited.
minus Can an NRI transfer shares purchased under PIS to others under private arrangement?
Shares purchased under PIS on stock exchange shall be sold on stock exchange only. Such Shares cannot be transferred by way of sale under private arrangement or by way of gift (except by NRIs to their relatives as defined in Section 6 of Companies Act, 1956 or to a charitable trust duly registered under the laws in India) to a person resident in India or outside India without prior approval of the Reserve Bank of India.
minus Can NRI trade in futures & options segment of the Exchange?
Yes, NRIs are allowed to invest in futures & options segment of the exchange out of Rupee funds held in India on non repatriation basis, subject to the limits prescribed by SEBI.
minus Can NRI trade in Currency derivative segment of the Exchange?
Yes, SEBI Vide Circular No.: SEBI / HO / MRD / DP / CIR / P / 2017 / 63, dated June 28, 2017 has permitted NRIs to participate in the exchange traded currency derivatives market to hedge the currency risk arising out of their investments in India under FEMA, 1999
minus Are NRIs allowed to invest in Exchange Traded Funds (ETFs)?
Yes, NRIs are allowed to Invest in Exchange Traded Funds (ETFs). NRIs can invest in ETFs both on repatriation as well as non repatriation basis
minus Can two separate trading accounts namely (NRE & NRO) can be opened by NRI?
Yes, clients can have two separate trading accounts based on NRE & NRO.
minus In case a person who is resident in India becomes a non-resident, will he / she be required to change the status of his/her holding from Resident to Non-Resident?
As per section 6(5) of FEMA, NRI can continue to hold the securities which he/she had purchased as a resident Indian, even after he/she has become a non resident Indian, on a non-repatriable basis.
minus In case a non-resident Indian becomes a resident in India, will he/she be required to change the status of his/her holding from NonResident to Resident?
Yes. It is the responsibility of the NRI to inform the change of status to the designated authorized dealer branch, through which the investor had made the investments in Portfolio Investment Scheme and the DP with whom he/she has opened the demat account. Subsequently, a new demat account in the resident status will have to be opened, securities should be transferred from the NRI demat account to resident account and then close the NRI demat account.
If you are an NRI customer and would like to open a PIS account, please submit your contact details. We will get in touch with you. To submit your contact details, please click here.
If you are an NRI customer and would like to open a NRI PIS account,
please call 044:71300 300 or e-mail: enquiry@apollomoney.com
We will get in touch with you.