Comment on NRI trading on Indian Stock Exchanges

Venu Madhav commented on 20 Jul 2015, 04:48 PM

Yes, if you’d want to trade only in ETF’s you can do so without a PIS letter.

However as a broker who offers online trading services, we cannot restrict your trading to just ETF’s. When we give you access to trade in the Equity segment, you could trade in any of the Equity stocks (apart from the ones on which RBI has restrictions) including ETF’s. Assume a situation where you end up buying an Equity stock instead of placing an order for an ETF. How do we account for such transactions?

In light of such limitations, we insist on opening an NRI Equity account with the PIS letter even if its only for ETF’s.

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