Comment on NRI trading on Indian Stock Exchanges

Nithin Kamath commented on 20 Jun 2017, 09:25 AM

Ashish, we had in between switched to say that a client can map this NRO directly with the trading account (instead of coming through the PIS route) and since operationally it would be like a normal account to us, we will charge lesser. But this stance of ours was wrong, because we realized that all the work that bank was doing – in terms of deducting TDS etc (as PIS) would come on our head now. We dont’ really have the bandwidth to do that with our pricing model. We hence switched back to letting NRI’s trade only by mapping their PIS to our trading account. This has additional operational burden as funds sit in the PIS, hence we charge higher. If it is through PIS, you can map either your NRE or NRO, the bank will deduct the TDS.

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