Opening an investment account in India is getting easier for NRIs

Opening a trading and demat account in India has become much simpler over the years. Resident Indians can complete the entire process online, from submitting documents and verifying their identity to signing the application, without visiting a branch or sending physical documents.

For non-resident Indians (NRIs), however, the process has remained complicated.

One of the biggest hurdles has been the Know Your Customer (KYC) requirements. Under SEBI’s existing rules, investors must be physically present in India to complete digital KYC.

For NRIs living abroad who need fresh KYC verification, this has meant getting documents attested by authorised entities, such as notaries or Indian embassies, and couriering physical copies to their broker.

Apart from the additional paperwork and costs, the process can take several days or even weeks.

SEBI has now introduced changes that should make account opening significantly easier for NRIs.

What’s changing?

On November 4, 2026, SEBI issued a circular relaxing KYC requirements for individuals residing outside India, including NRIs, Overseas Citizens of India (OCIs), and foreign nationals.

The biggest change is that eligible individuals residing in countries compliant with the Financial Action Task Force (FATF) will no longer need to be physically present in India to complete digital KYC.

The new rules will come into effect on December 3, 2026.

Apart from removing the requirement to be physically present in India, SEBI has introduced a few other changes.

Documents can be submitted digitally

Eligible investors can submit their KYC details and supporting documents online from abroad.

The new framework also allows electronically signed KYC forms and provides ways to verify documents digitally. This should reduce the need to sign and courier physical documents.

Identity verification can be completed through video

Instead of physical in-person verification, brokers can verify investors through a video call. The process will include safeguards such as location verification, identity checks, and the presence of an authorised representative of the broker.

This will allow eligible NRIs to complete identity verification without travelling to India.

Existing KYC records can be reused more easily

SEBI has also simplified how brokers can use KYC information already available with other financial institutions.

Brokers can retrieve existing records from KRAs and the Central KYC Records Registry (CKYCRR), reducing the need for investors to repeatedly submit the same information.

Additional verification may still be required if records are incomplete, outdated, or need further checks.

These changes will make it easier to complete NRI KYC online, without having to travel to India or courier physical documents.

Making investing easier for NRIs at Zerodha

Over the last year, we’ve made several changes to simplify investing and trading for NRIs at Zerodha.

Some of these improvements became possible because of regulatory changes, while others involved simplifying our own processes.

Simpler account opening

In August 2025, we introduced a new online account-opening flow for NRIs.

Earlier, opening an account involved filling out multiple forms and submitting considerable paperwork. With the new flow, NRIs can enter their details online, upload the required documents, and generate pre-filled application forms.

NRIs visiting India can complete the process digitally using Aadhaar-based e-signatures. Those living abroad whose KYC is already verified with a KRA can also complete account opening online.

With SEBI’s latest changes, we will be able to simplify this further for NRIs who need fresh KYC verification.

If your friends or family members want to open an account, you can refer them to Zerodha.

Need help with NRI account opening? Chat with us on WhatsApp.

Easier access to F&O trading

Earlier, NRIs wanting to trade futures and options had to obtain a Custodial Participant (CP) code and trade through a custodian. This involved additional documentation, costs, and operational complexity.

In July 2025, SEBI removed the mandatory CP code requirement for NRIs.

Following this change, eligible NRIs can trade F&O directly through their NRO Non-PIS accounts at Zerodha without the earlier CP code setup.

Equity intraday and BTST trading

We’ve also enabled equity intraday and Buy Today, Sell Tomorrow (BTST) trading for NRO Non-PIS accounts. This means eligible NRIs can now invest in stocks for the long term, trade intraday, and trade F&O through the same account.

Lower brokerage

In September 2025, we reduced brokerage for NRI Non-PIS accounts from ₹100 or 0.5% per executed order, whichever is lower, to ₹50 or 0.5%, whichever is lower. The revised brokerage applies to equity delivery, intraday, and F&O trades.

Brokerage for NRE-PIS accounts remains unchanged at ₹200 or 0.5% per executed order, whichever is lower.

Pledging holdings for collateral margin

NRIs with NRO Non-PIS accounts can now pledge eligible securities, including stocks, ETFs, mutual funds, bonds, and treasury bills, to obtain collateral margin for F&O trading.

This facility wasn’t available to NRI Non-PIS clients earlier.

More banking options

We’ve also added ICICI Bank as a partner bank for NRE-PIS accounts. NRIs can now open and link NRE-PIS accounts with Zerodha through six banks: HDFC Bank, IndusInd Bank, IDFC FIRST Bank, Yes Bank, Axis Bank, and ICICI Bank.