Comment on NRI trading on Indian Stock Exchanges

Nithin Kamath commented on 23 Jun 2015, 02:52 PM

Rajiv, the effort involved in supporting a NRI is much higher, imagine Axis charges you that much just to transfer money in and out. If you are a NRI, the funds don’t stay with us, they stay with the bank itself. In the morning the bank will send us how much funds you have in your bank account (which we have no control on), we have to update this manually on the trading platform. When you buy some stocks, at the end of the day we have to send a contract note to the bank to receive the credit for the same. Until the bank gives us the money, our margins get blocked. There is also an open risk that we take until the credit of funds happen. So just this entire process doesn’t make it worthwhile to be doing at Rs 20 per trade.
In a normal account, money is in clients trading account which we have control on. When he buys, the account gets debited and the shares credited to demat all automatically without any manual intervention.

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