NRI trading on Indian Stock Exchanges
Dear fellow NRI Investor/Trader,
The below blogpost is our effort to simplify what goes into opening a NRI trading and demat account for investing in the Indian Stock Exchanges through the PIS route.
Open an NRE/NRO savings bank account in India
NRE Account?
Non-resident External Account (NRE) is a bank account where both the principal and the interest earned can be repatriated. You can transfer dollars from your foreign bank account which gets converted to rupees when it hits your NRE account. Funds kept in the NRE account can be converted back into dollars and can be transferred back to your foreign account along with the interest earned. This ability of an asset to be moved from a foreign country to the investor’s home country is called repatriability.
NRO Account?
Non-resident Ordinary Account (NRO) is a bank account where principal and interest only upto $1million per year can be repatriated.
Check this link to know more.
Get an RBI approval to start investing on the stock exchanges (PIS)
You need to get a PIS (Portfolio Investment Scheme) permission letter from RBI (Reserve Bank of India) before you can open a trading or demat account with a brokerage in India.
How to get the PIS letter?
The bank where you opened the NRE/NRO account will take care of this. Make sure to submit all the requisite documents.
Open a Trading and Demat account
You can now open a trading and demat account with a brokerage firm (like Zerodha). Along with all the other documents, you have to also give a copy of the PIS letter that the bank would have given you. Here is the application form to open a Zerodha Trading & Demat Account.
Note that you can open both NRE and NRO bank account simultaneously with a bank. In this case, you have to specify which one of these two you want to be mapped to your trading account. You can map only one of these accounts to your trading account.By mapping your NRE account, you can only trade in the Equity segment whereas through an NRO account, you could trade in both Equity & Derivative segment. If you wish to map both these accounts for the sake of Equity trading, you’ll have to obtain 2 client codes from your brokerage firm.
Documents required to open a trading and demat account
- Copy of PIS permission letter
- Copy of FEMA declaration
- Copy of PAN card
- 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
- Indian address proof, if any
- Passport size photograph
- 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.
- Proof of Bank account (a cancelled cheque leaf of your NRE or NRO savings bank account)
- Note: Copy of PAN card, Passport and Foreign address proof to be self-attested and 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
- Declaration of P.O. Box in your residing country
- FATCA Declaration Form
Trading Process
- Allocate funds from your NRE/NRO bank account to your PIS.
- The bank now informs the brokerage firm on how much funds you have allocated. This is then updated on your trading account.
- When you make a stock purchase, the brokerage firm sends the buy contract note at the end of the day to the bank. The bank in turn debits your PIS account to that extent and credits the brokerage firm.
- Similarly when you sell some stocks from your demat, the brokerage firm sends a sell contract note at the end of the day to the bank and also credits your PIS bank account with the proceeds from the sale.
- Note that two separate contract notes are sent for all your buy transactions and sell transactions at the end of every day. The net amount credited/debited to your PIS will be including all charges that appear on the contract note.
Taxation
- Financial year ending in India: March 31st
- Last date for filing IT returns: July 31st
- Long term capital gains: Zero or exempt. Any gain made on stocks held for more than 1 year is exempt from any taxes.
- Short term capital gains: 15% on any gain made on stocks sold before 1 year.
- Trading income from F&O: Considered as business income, and taxed according to the Income tax (IT) slabs in India.
Trading on Futures and Options?
Yes you can trade in the F&O segment of the exchange out of the rupee funds held in India on a non-repatriate basis. It is a little complex to get started as trading on F&O requires a NRI to get a Custodial Participant (CP) code. We at Zerodha have tied up with Orbis Financial Corporation Limited for custodial business, and hence this CP code is assigned by Orbis. Once you have the CP code, all the funds for trading F&O will sit with the custodian, similar to how all your funds for trading stocks sit with your bank. A typical starting portfolio size for a custodial account is Rs 50 Lacs.
Other things to keep in mind
- Stock holding of an NRI can’t exceed 10% in any Indian listed company.
- NRI can trade only delivery based. No intraday trading on equity/stocks allowed.
- NRI can trade only equity and equity F&O. No currency or commodity trading allowed.
NRI at Zerodha
- Currently, we are servicing only such clients who have their PIS account with Axis, Indusind, HDFC Bank, Yes Bank and IDFC First Bank. We are in the process of tying up with more banks.
- As you can see that there is an incremental effort involved in servicing NRI clients as compared to a resident client, the brokerage is Rs.200/executed order for Equity (0.1% or Rs 200 whichever is lower) & Equity F&O is charged at Rs.100 per order.
(Revised charges applicable from March 1st 2022: For PIS account – 0.5% or Rs. 200 per executed order for equity (whichever is lower) and Rs 500 + GST as yearly account maintenance charges(AMC) charges.)
For more help, email [email protected].
Happy Trading and Investing,
Venu
Operations @ Zerodha
Exelent writing,it could not have more simpler…….Thanks.
I have cp code from IL&FS and FNO trading account with RKSV. Can I also open account with Zerodha for FNO trading?
Yep you can. You will not be able to use both brokers at the same time. You will have to choose either.
Hi,
This is the most crisp description of NRI account process I have come across. I have a follow up query. The Rs. 200 per order cost – is this per contract note or per stock/asset order in a contract note?
I am trading through PIS process for close to a decade now. You brokerage/per transaction cost is very very high. Assuming that Rs. 200 is per contract note, I break even with my existing brokerage cost if the CN value is app Rs. 75000. I am fully aware that the NRI process involves an overhead on the part of brokerage firm, i.e T+1 settlement for buy orders, however, the sell orders have a settlement cycle of T+2 with my existing bank. This should completely offset the overhead and more. Please let me know if there is any leave-way. I can share other details offline.
Thanks
Khush
Rs.200 per order. So if you place 3 different orders to buy 3 stocks, it’ll be Rs.600.
There’s incremental effort involved in all NRI trades, including updating balances, reporting contract notes, reconciling receipt/transfer of funds etc and hence the higher charge.
Dear Venu,
Thanks for your prompt response. It is no-brainer for me then.
You have a very professional, efficient and client focused team. Please do review the NRI account cost structure. With your current structure, moving from my existing set up would at least quadruple my brokerage costs.
Regards
Khush
Agree with Kush here… I have been planning to open an account, but the per order charges are steep and that you don’t have a tie up with ICICI where I have my NRI bank accounts. These two things have stopped me from taking it forward. I really like your simple platform and quality of service but would highly recommend reviewing the pricing.
Thanks –
Rohit
Rohit, unlike resident accounts, there is a huge manual process supporting NRI clients. ICICI, we will have soon.
Thanks for your reply Nithin. Will reconsider when you have a tie up with ICICI bank since ideally I would like to keep my accounts with them and it also depends on how much the bank will charge for the contract notes that is an additional 150-200 per contract note on top of 200 per trade from Zerodha.
Rohit, ICICI would take longer. We suggest you get started with your account opening. Axis is a good choice, their service is good and the charges are reasonable.
Hi Kush,
As you mentioned 200rs/trade is higher than your current brokerage charge, Which discount brokers provide
resonable rate ?
I have my NRE account through which I am investing now, but honestly I don’t like the interface ..
How can I link my ICICI direct account with u guys . ..
I just love good interface and products , Honestly you guys are best hands down
Agree,
I was thinking to open demat account with Zerodha but since the charge is huge hence stopped me to apply for their service. Come on man, you cant be that expensive just we being NRI. At Least charge reasonable rate like 200 rs on one time order no matter how many stocks we buy in single time
Ravi, Rs 200 is what we charge.
Nithin you mean this: If I buy 10 stock of company X, 20 stock of company Y , and blah blah .And I buy them on a any given day. I will have to pay 200. And same goes when I sell them?
Hey Chanchal. That’s right. The charges are Rs. 200 per executed order.
Hi Zerodha NRI team, I think we are missing something here. As per your site its 0.1% with max ceiling of Rs 200 per order. So if I make a order of 1 Lakh Rs, it will cost only Rs 100 brokerage + taxes. If we make single order transaction of just 5000 Rs , brokerage will be rs 5 only. Its not flat 200 Rs as your people are writing here. Please confirm?
Nady, that’s correct. The brokerage is 0.1% or Rs 200 whichever is lower.
Hi Matti,
Thanks for answering. Just want to reiterate its per order not per contract note right? so If I buy 10 different stock on a day , I pay 200*10 .Right ?
That’s right, it’s per order.
kamath sir.
200rs is too much should be 40rs which is double than residential clients.
It’s 0.1% or Rs 200, whichever is lower, per scrip. I’ve checked around and joined Zerodha because I found that relatively this is pretty low. Although, I have never traded to incur that maximum 200 charge so don’t know if it’s a game changer for big traders.
Hi Venu,
1. If I have PIS with HDFC, is there any additional cost that I have to pay to the bank? per trade to Zeroadha is Rs.200 is clear. What is a contract note?
2. Can I combine more than 2 stocks in a trade ? is there provision for this or it’s done at the end of the day settlement ?
3. Currently, I hold Demat a/c with HDFC, can I use the same and not open a new one?
Agree with Kush here… I have been planning to open an account, but the per order charges are too high These things have stopped me from taking it forward. I really like your simple platform and quality of service but would highly recommend reviewing the pricing.
As Nithin’s said, there are incremental efforts and hence the additional levy. By the way, have you explored the option of trading on non-repatriation basis which RBI now allows. It’s a recent development, the details of which you’ll find as an update at the start of the blog. Brokerage for such trades is the same as what it’s for regular resident accounts.
but this will still require a PIS form and the banks will still charge as per contract note? or PIS is not required in this case? can you please clarify .
Ashish, we have stopped supporting this way. This way would not have required PIS form. But this required us as brokers to do the TDS and etc (which bank would do otherwise). We don’t have the bandwidth currently, hence stopped this.
Hi Nithin !
I have NRO account & NRO PIS with YES bank – so
1. what are the charges? Zerodha brokerage + bank’s
2. If i make profit… can I buy and sell same day? (delivery based & not intra)
3. can i do future with only NRO account and without NRO PIS?
Also can i have your watsapp number?
Thanks
Nayak KS
Hi Nithin,
I have opened an NRE/NRO account with YES Bank few months back.I sent the documents to Zerodha,Bangalore,but unable to open account with Zerodha as I could not get PIS letter from Zerodha. I got reply from YES bank that “PIS account services are not available for USA/Canada territory”.
I believe Zerodha is tied up with YES Bank for NRIs to invest in Indian equities..Am i missing something here?
Hmmm… Shouldn’t be an issue with YES Bank. Can you write to nridesk[at]zerodha.com with your details? The team will get in touch.
Dear Z Team,
The post and reply of Kush are making so much annoyance/confusion on your platform.
If I am wrong correct me, please.
Brokerage is 0.1% or Rs 200, whichever is lower. Means
If I do trading of 100 shares 500 INR each which is 50,000 INR total my brokerage will be 50 INR. (50,000×0.1%=50 or 200, since 50is lower, that’s the brokerage)
If I do trading of 1,000 shares 500 INR each which is 5,00,000 INR total my brokerage will be 200 INR. (5,00,000×0.1%=500 or 200, since 200is lower, that’s the brokerage)
Which is definitely cheaper than any other brokers.
Rest brokerage on contract note or each trade on multiple trades for since contract note and all are just annoying and misguiding facts.
Brokers charge on each trade whether u do 1 or 100 trades per contract, that simple and easy. A contract note is just a document.
May you please correct me if I am wrong?
Thanks
Thank you for the simple article to understand the whole case. I would like to know that the 200/- Rs. charges are for equity delivery only or for intraday trading as well?
Equity delivery. Intraday is not allowed for NRI.
Hi Nikhil,
I have a NRO Non-PIS account with Standard Chartered bank.
Can i map this with Zerodha and open a trading account
If so, what is the process and what are the charges.
Regards,
Sumanth
Do check this: https://zerodha.com/z-connect/zerodha/open-an-account/nro-non-pis-account-opening
Dear Nikhil,
Based on comments from fellow NRIs, I would strongly recommend that Zerodha restrict brokerage charge to maximum Rs 200/per Contract irrespective of scrips involved.
This will simplify the matter for all of us and make it lucrative to move to you. This would be win win scenario.
Rs 200 per Scrip per Contract is not cost effective at all.
Thank you for giving a serious thought.
Kind regards,
Agreed, but its their shop their rules ,(Of course feasibility plays in)
It’s 0.1% or Rs 200, whichever is lower, per scrip. I’ve checked around and joined Zerodha because I found that relatively this is pretty low. Although, I have never traded to incur that maximum 200 charge so don’t know if it’s a game changer for big traders.
Sir, I got an email from another broker with this below message:
With the recent amendment in FEMA regulation, NRI’s can now invest in Equity Market like resident individuals. (Earlier NRIs were allowed to invest in Equity market through a PIS account only.) Now PIS account is required only if they want to repatriate (take out the funds out of the country) the sale proceeds.
Is this possible with Zerodha. If yes, then will the brokerage charges reduce?
Hmmm.. We haven’t heard anything on this. Can you forward that to my email: [email protected]. Yes, if it can work like a resident account, we sure will reduce the brokerage.
Hello Nithin,
This is the link Madhura was talking about.
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/FM361E7862E2EE31F4CF8A997AD32A0EE11B2.PDF
But looks like it will be applicable non-repatriation basis.
“(ii) A Non- Resident Indian (NRI) may acquire securities or units on a non-
repatriation basis, subject to the terms and conditions specified in Schedule 4.”
I am also interested in opening an NRI account linking with NRE account. Will the above make any change in brokerage of 200/- per transaction?
Thanks
Dinesh
Dinesh, yes we can allow this, we actually did it for a while. We later realized that all the work that bank does for PIS accounts (generating TDS certificates, etc) has to be done by us as broker. We don’t have the bandwidth for this at the margins we work at.
You can open a NRI account, which will be at that Rs 200/transaction.
Hi Nithin,
Recently I’ve moved out of India and i’m in the process of opening NRE/NRO account with Yes Bank. I’m also holding Zerodha resident trading and demat account .My queries are:
a)To trade as an NRI do i need to close my existing account and open a new demat account?
b) can I link my existing account to my NRO bank account?
c)What will be brokerage for equity delivery trade?
Thanks
Kamal
Hi Kamal,
a) Yes, you need to open a new NRI demat account. You would need to close the resident Trading & Demat account. It’d be better to transfer the share to a different account.
b) No, that’s not possible. Even if you link that, the status of the account doesn’t change to NRI. Also, One cannot link an NR account to a normal resident Trading & demat account.
c) The Equity brokerage will be 0.1% or Rs.200(whichever is lower) per executed order. You can refer to the other charges here
I am still a little confused by the “non-repatriable” clause. Basically you said that if the trading is done on a “non-repatriable” basis, you will treat the account as a resident account and the charges will be lowered.
1. I think an NRO account is treated as a “non-repatriable” account so if I link that to my PIS account and trade from there, would I be charged like a resident? But technically I can repatriate money from my NRO account by filing a 15CA / 15CB form. Is this now not possible?
2. If I link an NRE account and buy shares using that money, when I sell the shares tomorrow, does that money directly go to the NRE account? Also is TDS done?
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.
Ok… if i map thru NRO PIS what would be the Zerodha brokerage + bank’s charges?
The bank’s charges are best checked with the bank. The brokerage would be Rs. 200 per executed order. You’d only be able to do delivery based trades though.
Hi i filled the online application form and have NRE acnt with ICICI bank what are the charges you take for trading and demat acnt and contracts such as buying and selling equities.is it 0% as advetised for equity for NRIs .
I also got NRO acnt with ICICI bank.
For NRI’s it is 0.1% or Rs 200 whichver is lower.
RBI is approved. NRIs can do stock transaction through NRO account with non repatriation basis with out operating PIS account and save little.
Latest. With out operating a PIS account, NRIs can open a NRO account and do buy/sell shares with non repatriation basis. Operating PIS account is too costly. But most of the stock brokers are not promoting this facilities including Zerodha.
The issue with this non-PIS, NRO account is that the TDS calculations for this aren’t done by the banks. For the broker, this is a huge operational overhead and so nobody offers it.
Nice
How do i open a corporate account? ?
Hi Pavan, we’ve explained the corporate account process here.
yes Mr. Asif with the help of your CP Code which is generated by the ILFS for the trading in F&O is also acceptable for you to trade in RKSV securities india pvt ltd for F&O seg
I wanted to open account with zerodha but by looking there charges, I stopped myself. It is really expensive for NRI. Do consider to review your charges..If you want NRI like me to open account with Zerodha
Supporting NRI clients involve a lot of manual work. If you map your NRO savings account, you can open a resident trading account with 0 brokerage.
Hi Nithin,
I have a NRI trading account with Zerodha. With reference to the updated FEMA guidelines for NRI’s, is it okay if I close my existing PIS A/C with Axis Bank and link my Federal Bank NRO account with Zerodha.
Also, I am not sure if I can continue to trade in F&O if I have a CP issued from IL&FS.
I would really appreciate if you can give some clarity on the above.
Using the NRO account, you can do only equity delivery trades. For F&O, you will still need the CP code. You can close your PIS and link NRO, if you are okay doing only equity delivery trades.
Thank you for your reply.
So to continue trading in F&O. I will need the PIS account?Recently I received an email from Axis Bank stating that in regards to the updated FEMA guidelines issued by RBI, the PIS acccount is convented to NRO Investment account. I am not sure if what you are refering to as a PIS account is the same as this.
Also, they have mentioned their Secondary Market Transaction Charges as Rs 150 per trade per leg.
To trade in F&O, you’ll need to obtain what is called a Custodial Participant (CP Code), you don’t need a PIS account to trade the F&O segment. You’ll have to link an NRO SB account.
Hi venu, Could you please tell me who can provide me CP code. I have bank account with Yes bank. can bank provide me CP code or IL&FS?
Nithin,
Can you provide more details around this comment. Do you mean, I’ve a residential demat account with broker A now. Though I’m an NRI for a few months time, I’m remitting money to saving account and investing as I normally do as I was in India.
Now I want to convert resident bank account to NRO account (may be an NRE account too). Once the bank account converts to NRO account, can I maintain the demat account as is?. Otherwise I need to close the existing demat account and ask for new NRO (Non-repartiable) demat account and transfer existing shares?.
Same Situation . Waiting for answer. I am also NRI for shrot term. Did you got any information on it?
Dear Nitin,
I already have NRE account mapped with zerodha through PIS route. So if I open another account with zerodha and map it with NRO can I trade it as indian resident under zero brokerage?
No Kulwant, we have stopped that facility for now.
On pis account if demat, trading account is opened, which allow mutual fund buying as well?
Not right now, though we’re working towards making this happen, Kamlesh.
In general to invest through SIP in mutual fund is allowed for NRI as far as I search google;,
as I found that – “Certainly, NRIs can invest in mutual funds in India – as long as they adhere to the Foreign Exchange Management Act (FEMA) ”
is there something not sure something is required for Zerodha to allow this.. ??
There are operational challenges involved. But we will work on allowing NRIs to invest in direct mutual funds down the line.
Thank you for update..
As an NRI, can I open a demat account at an overseas branch?
Hi Melwyn, you’ll have to send the account opening documents to our offices in Bangalore.
Is It possible to open trading account with citibank nri account?
No, it’s not possible to open an NRI account by mapping a citibank account.We are currently servicing such clients who have their PIS account with Axis and HDFC Bank. We are in the process of tying up with more banks.
Hi,
Would it be possible to know when you add more banks ? Citibank has been major player for NRI accounts since years and having them on board along with others would definitely make it easy for many NRIs to invest via zerodha.
My latest attempt to open HDFC NRE with PIS was unsuccessful. To open such account I have to be physically present in India. Effectively there would be many like us who have NRE accounts but, can’t open PIS in Citibank or ICICI and so can’t trade via Zerodha.
Hi,
I would like to transfer my home account to NRE account. Is there any agency service available for me to open NRE account?
I am new customer of zerodha.
And my experience with zerodha is bad.service was very bad. Customer care number always busy.i recommend to all don’t use zerodha
Nice one! I wish Zerodha have support for SBI PIS account also.
Also, this article need one updation (as I noticed) regarding long-term capital gains tax.
Thanks!
Shyniben
I have an HDFC – NRO saving account and asked him to provide the PIS letter to apply for the Zerodha account. The manager of HDFC – NRI services said that I don’t need a PIS letter if I need to open the NRO account.
Fifteen day before 200 rs were deducted from my account and i havent received Mail id and password yet
Please resolve my problem ASAP
If IPV is infeasible for NRI from the broker’s side, attested copies of documents by Indian Embassy/ Consulate General, Notary public, Judge, Local Banker, Any Court in the residing country are also allowed.
Is the above statment valid?
Hi Shilpi, it looks like you are referring to when PAN is not KYC verified as an NRI, in such cases the above statement is valid. Explained here. Best if you create a ticket for further clarifications, our team will reach out and assist you.
Please my userid and possward rest me
Hi, please create a ticket at support.zerodha.com with details of the issue, so our team can check and have this resolved at the earliest.
Can NRI holding USA passport but living in India eligible for this?
What’s your current residential status? Are you a Foreign national? If so, you’ll have to come in through foreign portfolio investment (FPI)
Hi,
My friend lives in India but he is a USA citizen and a holder of OCI (Overseas Citizenship of India) card.
Can he invest in stock market as a resident individual ?
Thanks
An OCI is considered on part with an NRI. NSE FAQ here: https://www.nseindia.com/content/members/faq_NRI_TA.pdf
He’ll have to invest as a non resident.
BEST IN THE WORLD – I may be an NRI soon
Thanks & God bless
Other things to keep in mind:
2nd Point:- NRI can trade only delivery based. No intraday trading on equity/stocks allowed.
Can someone elaborate this point please, I am a newbie here.
Thanks
Intraday = Buying and selling in the same day
Delivery = Buy and hold it overnight.
An NRI can’t do Intraday trades.
but nithin saying that You can buy and sell the next second if you want, or hold it till expiry.
Ah Rajiv my bad, didn’t realize your question was in the context of NRI trading. As mentioned, if you want to trade F&O as an NRI you have to come through the custodial route. But once you do, you can trade F&O for intraday or positional no issues.
What Venu has mentioned about is for equity trading. No intraday equity trading allowed for NRI’s.
How to get CP code? I have account with AXIS Bank. I would like to do equity future. what are the zerodha charges?
For F&O trading via the CP route, we charge Rs. 100 per order at Zerodha. You’d have to approach a custodian like IL&FS for getting a CP code. Please write to [email protected] and the team will help you with details on this.
Many Thanks Mr. Venu.
NRO Charges will be different than resident account, can you please advise in terms like 5% 2% n all
Not sure if you’re referring to the brokerage bit. If that’s what you’re speaking of, then the brokerage would be Rs.200/order.
Does Zerodha assist in opening the PIS Account, as u have tie ups with axis and hdfc.
As in we send the docs to you and you would open the PIS account with the bank and link it as well.
Chris, we can connect you to the HDFC guys, but we will not be able to accept the documents required for getting the PIS up.
Hi Guys,
I have been trying to get started by opening an account with HDFC but they are clueless about PIS letter. It’s been a month and they still haven’t come close to figuring out what it is. Do you guys know someone in HDFC who handles all this? Or am I better off trying my luck with Axis?
Mahesh
Which branch have you been coordinating with? You can get in touch with Naveen on 9379807762, [email protected] to get your PIS account opened.
I see this post is from 2015. I’m trying to get my PIS account opened with HDFC but it doesn’t seem quite easy. Can you folks share your current point of contact at HDFC Bank. (The number mentioned is switched off and not sure if its valid anymore)
Another question – Regarding the fees, whats a scrip or contract? Practically, if I buy 100 stocks of company A (worth 1k) and 100 stocks of company B (worth 10k) in a transaction, would I still be charged Rs 200 at max? Or is it Rs 200 for each company i.e Rs 400 in the above case.
Thanks!
Hey Abhijeet. Sorry for the delayed response. You can write to nridesk[at]zerodha[dot]com for help with a PIS account. Alternatively, you can also open a non-PIS account with us. We’ve made this facility available recently. Explained here.
so it is not possible to trade intraday in F&O, only positional calls?
Yes
okay if I am taking a NRML position in some scrip it reached my target same day itself so can i able to square off the position or should i wait for the next day
You can definitely square off the same day. You can buy and sell the next second if you want, or hold it till expiry.
In the context of F&O for NRI’s ” A typical starting portfolio size for a custodial account is Rs 25lks.”. Can you kindly elaborate on this please? I presume you are talking exposure ? What happens in cases where one would want lower exposure ?
Shiva, when you open a custodial account, the person offering custodial services usually demands atleast a Rs 25lk custody portfolio size. 25lks including funds + stocks + any other security that you deposit with the custodian. What exposure you take using the 25lks is completely upto you, there is no restrictions on this.
Also note that the custodian will charge a clearing fees(Rs 200 to Rs 300 per crore) over and above the brokerage charged.
Understood..thanks for the quick response
Lovely, wonderful piece of information. Got to learn many things. Thanks.
I am planning to invest around 10-15K every month and I am an NRI (Europe). Is that possible to do? Do I need an account with Axis or HDFC for this or can I use ICICI NRI account also?
Also there is a comment on 25lk. I do not have that amount. Is that a problem?
Prasanna that 25lk is for custodial accounts. NRI’s who intend to trade on derivative or F&O markets. There is no restriction in case of buying equity delivery based (stocks) that you intend to do. For now we don’t have a tie up with ICICI, we will have it running soon.
Is SBI NRE account will be supported any time soon? Also being NRI from USA am I eligible to open trading/demat account with you guys? Thanks!
For now only HDFC and Axis is supported. Yes we have many NRI clients trading with us.
I had a few questions,
1. I don’t understand the F&O trading for NRI. Are you saying an NRI can only trade in the derivatives market if he/she has atleast 25lakhs worth of securities (all of which should be in the custodial account)?
2. NRI cannot trade in currency or commodities? So in that case its not possible to do any forward contracts on currencies (something that normally happens in forex trading)?
3. Is there any workaround for any of the above two scenarios. Like for example opening a joint account with a resident indian?
Also a couple of other questions
1. Is it possible to subtract the loss that we make while trading securities from income taxes?
2. Are there any restrictions in trading ETF & regular mutual funds?
1. Yes, you can if you are declaring your trading as a business. Check this post.
2. No restrictions.
Ram,
1. No, there is no such rule. But usually the companies that offer custodial services may not show too much interest if you keep securities/funds less than that.
2. Yes, no forex or commodity trading for NRI
3. Hmm.. yeah, if you have an Indian friend/relative/company, you can trade using that.
Thank you Nitin.
One of the query
Is there any workaround for any of the above two scenarios. Like for example opening a joint account with a resident indian?
You replied to open Joint account and trade. Can I understand the legal complication around that.
No workaround. Trading account can’t be a joint account, only the demat can.
Dear Nithin
Please note I had already opened a PIS with axis bank as per Zerodha, now please summarize the requirement of documents to be notarized by Indian embassy here in Qatar.
I will go to embassy at one time to get all docs done instead of identifying on piecemeal basis later
What I can see from above is copy of pan card, passport and. Foreign address proof to be notorized and somewhere I read power of attorney to be stamped by embassy, please list any thing else required to be attested by them.
Also I notice there is jump in brokerage from 20 to 200? Please confirm
I’m going to embassy by this Thursday and hope to get the docs attested by them and will proceed to send these to you by post along with signed forms.
Regards
Mohamed mohideen
PAN, Passport and Foreign address proof – These are the 3 documents that need attestation by the Embassy.
Edit: Additionally, the Power of Attorney also needs to be attested.
Dear Venusir
I just followed this comment in my case. i attested Pan, passport and address proof by embassy last day spending my lot of time. And now your colleague is asking for attestation on power of attorney as well. please clarify.
Regards
Shine
Have asked your Sales manager to get in touch with you.
Hi,
Could you please answer the following questions (specifically for USA based NRI):
1. Can the demat account be opened while the NRI is in the US by mailing the required documents or the NRI needs to be in India?
2. Once the demat account is opened can the NRI do online equity transaction (i.e. buying and selling stocks from secondary market) online or there are restrictions around doing online transaction?
Thanks –
Rohit
1. yes.
2. You can trade completely online.
Hi Nithin,
Thank you for your response. Your answer to the first question is not clear. Can a US based NRI send the required documents via mail to open a demat account while the NRI is in the US? I thought there were restrictions by the SEC regarding account opening that the NRI needed to be in India.
Thanks –
Rohit
No Rohit, no restrictions as such. but you need to get copies of all your documents notarized by the Indian Embassy.
Can you provide the name of HDFC or axis rep who can help me open up Demat and PIS account. I already have HDFC NRO/NRE account
Bhadresh, can you write to nridesk@zerodha and we’ll connect you with them.
Hi:
I have NRE SAVINGS ACCOUNT AND NRE pis ACCOUNT WITH YES BANK.
Can you please let me know if there is a possibility that Zerodha will establish a connect with yes bank.
That would be excellent.
Thanks
Santanu, it might take us a bit before we tie up with Yes Bank.
Hi Mr Nitin kamath
my name is damodhar reddy living in indonesia . recently i have applied to open zerodha trading and demat account with Axis PIS account , after completion of all the process from your team .after submitting my application .finally IL&FS has rejected my application saying that Indonesia NRI’S Are not allowed to invest and not allowed to open Demat . i am really surprised to hear that .in such case your team didnt even give any info about that and wasted my valuable time .let us keep this issue for while . my another logic point is .as there is no such restriction from RBI .if such case how could i open demat from icici and other banks .i have invested in mutual funds as well as equity through some other platform .if at all such rule exists why only ILFS made their own rules ? i am really requesting you .there are many customers not happy with this kind of issues .i strongly suggest please make a system in such way that you can accept demat with some other entity who can give good service .please get back to me on this ,[email protected]
sir in abroad can i do intraday trading ,positonal trading and commidity trading in pi
Yes, if your account is a residend Indian account, u can do any kind of trading you want. But if your account is NRI, then only equity delivery based trades.
Hi Nitin,
Did you mean here that , NRI can keep using his residential Dmat account ?
Hi Nithin,
A wonderful initiative by Zerodha. I am a NRI based in Dubai and already have a 3 in 1 ( NRE/PIS Demat and trading ) account with HDFC bank. my questions are
1. Can I use that same PIS account to trade with Zerodha or I need a new PIS to trade with a different broker?
2. how is the workflow like ? If my money is in PIS and the Demat and trading account is with Zerodha so if I place an buy or sell order online the order amount automatically gets debited from the PIS or I need to transfer that amount manually beforehand?
3. what are the charges for the new PIS account with the banks and the charges for the Demat and trading account with Zerodha? are there any initial one time account opening charges and then annual charges later on? please elaborate about the same.
4. If we open the PIS with HDFC/Axis bank and then use Zerodha for demat and trading what are the total charges from Banks side and the brokerage from Zerodhas side. It will help if we can compare the all inclusive costs for a buy/sell order for Equity delivery.
Thanks,
Peeyush
Hi Peeyush,
Please find answers below:
1) You can only have one PIS account. If its mapped to another broker, you’d have to disassociate with him and get yourself mapped to Zerodha. As an NRI, you cannot trade with more than one broker at one time.
2) Yes, everything’s done online. Your PIS bank (HDFC) updates us of the availability of funds. We update such funds as your trading limits. When you buy, we send the contract note to your bank, bank debits your account and gives us the money. In case you sell, the bank debits our account and gives you the money.
3) We wouldn’t know how much your bank would charge to open a PIS account. It’s best to get in touch with someone from the bank. About the charges with Zerodha, I’d appreciate if you can give us your contact details, we’ll get someone from our Sales team to give you a call and assist you. Do send an email to [email protected] with your contact details.
4) Brokerage would be Rs.200/order regardless of the order value. Request you to refer our brokerage calculator: http://zerodha.com/brokerage_calculator to know the charges. The only change you’d have to make here is change the brokerage to 400 (instead of 40 that it shows)
Venu:
Please establish a tie up with YES bank. I have a NRE savings and NRE-PIS account with them. I am interested to open a NRE brokerage account with ZERODHA.
Please help..
Hi,
Thank you for the article, It’s explains everything in a very simple way. Well written.
BTW, I’ve a question regarding this topic.
Currently I have a trading account with zerodha & demat account with IL&FS. I moved out of india few months back & will be stationed abroad for quite some time. Coming times my status will change from resident to NRI. I would like to migrate my account from resident to NRI category.
Is there a possibility to do so. If yes then then please tell the procedure.
Thank you.
Hi Abinash,
There’s no conversion option available. We’d have to close your existing residential account and open a new NRI account.
Hi Venu,
excellent info. Can you please provide more info for NRIs from USA.
My situation is
1. I had a Resident Savings a/c with a big Indian based bank and the DMAT too, opened way back in to 2004
2. Once I settled in USA, I had asked to convert my Resident Savings account to NRO status so that I can do all the bank transactions without any issues
3. Once the Savings a/c was converted to NRO a/c, my DMAT account was blocked (understandably owing to new regulations)
4. Not sure if I have the PIS, as my DMAT is very old one
5. I am planning to visit India in the winter and opening a NRI DMAT a/c (lack of better name?) is part of the trip. I would like to know what is the procedure for NRI’s from USA (I am still Indian citizen)
6. Can you please let me know the steps involved in opening a Zerodha Trading account
7. Also the fees associated with the account, fess/charges etc associated with trading
8. In general how much time would it take to complete each step of the process.
Thanks and appreciate you inputs.
Nandu
Hi Nandu,
The easiest thing to do would be to open a new PIS account. Regulations have changed since 2004 and it’d be better if you could start afresh.
Do send an email with your contact information and I’ll put you through to someone from my Sales team who can help you get your account opened.
To sum up the process:
– Open a bank account in a branch of a designated bank by RBI.
– Apply for a general approval for investment in Indian Stock Market through the bank branch.
– Open a Demat A/C with any depository participant.
– Open a trading account with registered stock broker for carrying transactions on stock exchanges.
You can use our brokerage calculator which will indicate the various charges for trading at Zerodha: http://zerodha.com/brokerage_calculator
The brokerage however will be Rs.200/order
The time taken would depend on how swiftly we can receive documents from you. A trading account typically takes one day and a demat account upto 10 working days.
Share is the Ownership of the company divided into small parts and each part is called as Share or Stock.
I’m and NRI working in UAE. I’m an Indian national even though in my passport birth place is given as Kuwait. I’m not at all familiar with this trading.Can you please advice will Zerodha trade on behalf of me if make an invest or say deposit.
Hi Ajiv, as Zerodha we don’t partake in portfolio advisory or management. Our business model is around offering an efficient trading platform.
Hi, I had obtained PIS through HDFC bank many years back but never done any trading. I have since closed my accounts with HDFC bank and currently have accounts with Indian Overseas Bank . Can I use the PIS letter obtained through HDFC bank and my present NRE a/c with Indian Overseas Bank to start equity trading through Zerodha ? How to go about this ? Please advise.
Hi Ajith,
For now we are only supporting trading through Axis/HDFC Bank’s PIS accounts. You’d have to obtain a new PIS accounts with one of these banks.
Hi Sir,
I would like to know more about your franchise expansion drive over to rest of the world or the other part of India. If you are expanding through franchisee, I also would like to get into the available options, please direct me to the concerned person.
regards,
Ibrahim M
Ibrahim, we are currently looking at only within India. You can send an email to [email protected] (he is AVP-Sales with us).
Thanks Nithin.
I am sending an email to him.
Regards,
Ibrahim M
Hi,
what will happened to shares held in zerodha NRI Dmat account after we returned back to India permanently ( NRI status expires), Is we have to open another local Dmat and trading account and transfer shares held from NRI Dmat account. Please elaborate.
You’d have to close your NRI Demat account and open a new resident Demat account. The holdings can be transferred to your newly opened demat account. Conversion of NRI demat account to resident demat account isn’t possible.
Hello,
I already have an account with Zerodha. Can i continue trading if i am going to US for few months to an year (on B1 or L1 Visa) visa (sent by my company for transition)?
Will i be able to access all Zerodha features like Pi, NEST etc without any barriers while i am abroad?
Thanks
Sukesh
Yes you should be able to use all Zerodha features. I guess in the middle east, countries like Saudi and others usually have a problem you trading. But no problems otherwise.
Hi,
I have a zerodha resident trading account. I moved to USA last year, since than I have not traded as my resident status was changed to NRI. I converted the linked HDFC bank account to NRO A/c.
Please let me know if I can start trading again as an NRI. What all documents would be required to submit.
Thanks, Dinesh
You’ll have to close the account and open a new account since the residential status has changed. The list of documents required to open an account:
* Copy of PIS permission letter
* Copy of FEMA declaration
* Copy of PAN card
* 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
* Passport size photograph
* 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.
* Proof of Bank account (a cancelled cheque leaf of your NRE or NRO savings bank account)
Note: Copy of PAN card, Passport, and Foreign address proof to be notarized by Indian Embassy
HI I am travelling abroad frequently. so i am planning to open a DEMAT account in my mother name. It is allowed?
Yep
hi
My question is also same. So you mean I can trade behalf of my mother who is in India and I am in UAE? I can do trading from here, right??
You Indians have too much red tape bureaucracy for NRIs. Typical bureaucratic Indian government as usual does not know how to make it easier for NRIs to invest in the Indian markets.
Thank you for your great information.
Could you please help me how to know the companies have reach the 10% NRI quota for stock?
(As per the limitation as an NRI, “Stock holding of an NRI can’t exceed 10% in any Indian listed company.”)
Hi,
Could you please explain why the brokerage per trade for NRI is 200 ( which is 10 x for resident customers) ?
Secondly, in the calculator mentioned, the service tax on brokerage will also increase by approx. Rs. 50.4 [i.e. 14% x (400-40)]. Total service tax will be Rs. 56, instead of 5.6
Lastly, for NRI’s, we have to also pay Bank’s transaction charges ( which for Axis bank PIS is Rs. 300 on a round trade ( Rs 150 on each leg), and additional service charge of Rs. 42 per round trade. Thus, total bank charges alone are about 342 per round trade.
As a thumb rule, the breakeven price for a NRI investing say up to Rs. 50,000 per trade is about 2%, or in other words, the transaction costs and taxes eat up about 2% of gains. For Rs. 25,000 per trade, this amount becomes about 3.75%
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.
Hello Nithin,
I am reading all your comments from 2015 in 2021.
I agree that there is lot of work involved for NRI customers compared to residents.
Is the process automated now ? Is the pricing still same for NRI customers.
How about if we open NRE account with IDFC bank as zerodha has tie up with them?
Is there any article which explains detail bank charges and zerodha charges?
Same here… I am also reading all these comments from 2015 in June, 2021. And in addition to your query, I also want to know that if Zerodha has started supporting the Non-PIS based trading route, as their website support pages still show that NRIs can trade through the Non-PIS based NRO accounts at Zerodha.
@Nitin Kamath
Dear sir, can you please respond on the above queries?
Hi Vivek, we allow the opening of NRI accounts via the non-PIS route offline today. We’ll soon start offering this as an online process. In fact, we have already started work on building the online flow.
Its been 8 months since your last reply. Is this process online now? It is hassle with offline process! If not, what is the ETA? Please fast track this process. Thank you!
Hey, we’re working on this and will keep you posted. However, we cannot provide a timeline at this moment.
Venu
I am a starter in this field. No demat account and trading account yet. I have an NRE account with Axis bank at Kochi and another at SBT Kottayam. What is your proposal for best way to operate the trading account and Demat account and where to open them.
Through Zerodha… IL & FS route or some other ways.
Shaji, you can get PIS from Axis Kochi. We will open the demat and trading for you.
Hi ,
I am a student, currently in Europe for studies.
I have a bank account and demat account in India. Both are in same Bank. Lets say HDFC.
So how can I open the trading and demat account at Zerodha ?
Please keep in mind that right now I am in Europe.
Kumar, if you have changed your bank account status as a NRI, you will need to open a NRI trading account like explained above. If your status on the savings account is still residential, you can just open a normal trading and demat account. https://zerodha.com/open-account, use our online application tool, fill it, print it, attach the documents and send it out to us.
Excellent stuff guys.
Could you tell me what happens to the current holdings (as a Resident) when we open the new NRI (PIS/NRE/NRO/Demat) accounts? I understand that its a separate set-up altogether, but can someone get his current holdings transferred to the new set-up somehow?
Ashish, you can very easily move holdings from your existing demat to our demat once the account opens. Your existing demat would have delivery slips (similar to cheque book), you can use that to transfer shares from one demat to another.
Yes Ashish, you can move your current holdings from your normal demat to the NRI demat account. There is an RBI approval letter required though for this.
Who will secure the RBI approval letter to transfer resident Demat A/c holding to NRO DEMAT A/c? is there a format available or is it online process to do so?
Chetan, On the PIS account form there is an annexure where you need to mention your existing holdings in your resident demat account. These can be transferred only to an NRO demat account.You’ll have to submit a soft copy of that annexure to us at the time of account opening/transferring your holdings from the resident account.
Nitin , Hi
a feedback
The day seperator works fine and is good but you need to zoom & forward a lot to get to the current ongoing date.Is it possible in the software at some stage to ensure that :
when a day separator is chosen & the zoom is selected it should by default choose the latest date .a lot of time can be saved
thanks in advance
let me bounce it off our tech team.
Have u used the shortcut keys, Home and End? End automatically zooms in into last 100 candles.
Hi:
May be this has been discussed already , pls help me understand it little better.
I have a resident Demat account in India with IIFL. If I open a NRI Demat account with Zerodha along with PIS with Axis , can I transfer my present holding in resident demat to NRI Demat ? or I have to open another NRO Demat to transfer my present holding in resident demat.
Please help.
Thanks
Santanu
Santanu, as long as you have the PIS letter in place for your new NRI demat account, you can transfer.
I have already opened NRI trading / PIS/ NRE savings bank account with HDFC Bank.
Now can I buy/Sell share through you? Can you please describe the system/procedure ?
Regards,
HEMENDRA
You need to open a new trading and demat account with us. The procedure is explained in the post above.
Hi,
I am an NRI based in Europe. I have ICICI Direct PIS & Demat account. As I understand from your post, the PIS account should be from Axis/HDFC, no problem I can open the account with either Axis or HDFC in few days. Since, I am going to India in couple of weeks, is it possible to submit all the other required documents directly to the Zerodha office in Chennai? bcoz It will save me a lot of hassle travelling to Indian embassy. As everyone knows, getting notary cannot done be in one day with our great embassy people. Please advice.
Thanks
Yes Ela, you could walkin to our chennai office. Do send an email once to [email protected] and have a word with him to ensure you have all the documents in place.
Nitin,
Thanks for the reply. I am little confused about NRE PINS and NRO PINS account. I have NRE PINS account with ICICI Bank and I myself locked with them by prepaid brokerage for 15 years. So, I would like to keep the NRE PINS account with them until I utilise all the prepaid balance. In this case, can I open seperate NRO PINS account with HDFC/Axis? From internet what I see is that I should have both the NRE and NRO PINS account with the same bank. Please clarify my doubt..
As per rules, you cannot maintain multiple PIS accounts with different banks. ICICI should be able to refund whatever excess brokerage you’ve paid them. Once you’ve closed your PIS account with ICICI, you’d be able to trade with Zerodha. Looking forward to seeing you trade with Zerodha soon 🙂
If I want to invest ONLY in ETFs, do you still need PIS permission letter. As per my understanding, ETFs can traded only through Non PINS NRE or Non PINS NRO account. If I interpret this correctly, I should able to use a normal NRE/NRO account. So If you support it, then I should be able to link my normal NRE/NRO account to your Trading and Demat account.
Thanks
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.
What is the brokerage charge for NRI customer.
Please explain me from this perspective.l purchase RIL 100 share at 900 and sale at 1050 on delivery basis. What will be the total charges for brokerage, ST etc, excluding short term capital gain.
Considering this trade, your trading costs will be as under:
Brokerage: Rs.400
STT: 195
Transaction charges: 6.34
Service Tax: 56.89
SEBI charges: 0.39
Stamp duty: As applicable
Still getting confused it mentions brokerage is 0.1% or 200rs which ever is lower. so that means it would be 0.1% of 900rs when buying & 0.1% of rs 1050
please advise.
Hi,
Currently I am trading in F&O through a Partnership firm, with me and wife as the 2 partners.
We both intend to become NRI’s in 2017-18.
Can I continue to trade through the existing Partnership firm OR will I have to trade in the personal account of either myself or that of my wife ?
If your residential status changes, you cannot convert the existing Resident trading account to an NRI account. You’ll have to close down the existing account and open a new account.
If you’ve to trade in the F&O segment as an NRI, you’d have to do it through a Custodial participant. Hope this helps
I agree I will have to close the current one and open another account. But can that new account be another partnership firm (with both partners as NRIs) OR will it have to be an individual account ?
Did you able to tie up with Yesbank or South India Bank where PIS charges are far lower compared to other banks?
Not yet Surya
Hi Zerodha Team,
I have one more question regarding PIS reporting charges.
Axis bank mentioned:
Rs. 150 will be levied on per trade date. Separate for purchase and sale
HDFC bank mentioned:
Rs. 100 per purchase contract
Rs. 100 per sale contract
Processing of sale proceeds under PIS:
Rs. 100 for less than 50,000 transaction
Rs. 250 for 50,000 to 3,00,000 transaction
Rs. 500 for 3,00,000 transaction
Does it,
If I have AXIS PIS account, I would be paying Rs. 100 per executed order for purchase and sale?
If I have HDFC PIS account, I would be paying Rs.500 per executed order for transaction above 3,00,000?
So effectively,
I pay Brokerage: 200 Rs to Zerodha + other charges and PIS reporting + sale proceeds transaction fee?
For example:
Brokerage: 200 Rs + other charges
PIS sale transaction fee: 500 Rs (If transaction is greater than 3 lakh rupees)
PIS reporting fee: 100 Rs
Total: 700 Rs + Other charges
Please clarify.
Thanks
Yes, each bank has a different fee that they collect for processing all trades. These are additional charges that are levied by the bank for the service that they are providing to you.
We wouldn’t be aware of the rates that are being offered to you. You could get in touch with the Bank to know more.
Hi,
Someone informed me today that due to some RBI rules USA based NRIs cannot do online trading. Is this information correct?
Regards,
No, nothing like that.
Hi Nithin,
This is great help that you are replying to these questions. There seems to be a lot of confusion and restrictions around things and it really helps if someone can clarify. So, thanks for doing this.
I have the same question to which you just replied and I also asked before and since there are so many documents and forms involved in completing the formality I want to make sure that the information is correct and there are no surprises at a later stage.
I have also heard that due to some US SEC rules the US based NRI
1. Can’t open a trading/demat account remotely. They need to be in India to do so, and
2. There are restrictions on online trading i.e. to execute a trade you need to call a broker/fax or mail.
Here is a link which talks about this
http://articles.economictimes.indiatimes.com/2011-08-16/news/29892483_1_foreign-brokers-demat-trading-accounts
Could you please confirm if a US based NRI can open an account just by mailing the documents and if he/she can do online trading as well.
Thanks again for your help.
Rohit
Hi Rohit,
1) You can get the account opened remotely. However we’ll have to do an In person verification through webcam and you’ll have to get all your documents attested by the Embassy.
2) Not really, you can execute trades on the platform we give you.
Hi,
one more question. Suppose as a resident indian i bought shares in my demat account. How can these shares be sold now when I am a NRI.
Regards,
Open a new NRI demat account, transfer the shares there, and sell them.
Why do you restrict yourself to HDFC and AXIS. Why should you not go for banks with much larger NRI reach like State Bank of India. Many NRIs may be interested in ZERODHA but not in opening another NRI account with these banks just for the sake of trading with ZERODHA.
Piyush, we are working on partnering with other banks as well.
SBI does not allow linking of NRE accounts with other brokers, only with SBI securities. So can I link my HDFC NRO account to open Demat account with zerodha?
Hi:
Q1.
I am almost done with Axis PIS account. But to open demat account with Zerodha , is it mandatory to get them attested by Indian embassy ? That is a big pain and time consuming as well..
Please let me know is there any other alternative. BTW, I am in US
Q2. Pls reconfirm that I will be able to transfer my present holding in Indian resident account with IIFL can be transferred to Zerodha NRI demat account with AXIS PIS.
Thanks
Santanu
1. Yes, the attestation is mandatory.
2. Yes, shares can be transferred to your new NRI demat account.
do u open a trading account for a pis account in idbi bank. if not by when do u intend to start wt idbi…….thanks
We don’t currently have partnership with IDBI. Might take a little longer
Hi Nithin,
I does F&O trading through zerodha & a/c with ICICI. My present status is NRI & converted my ICICI a/c in to NRI a/c.
Can I continue trade if I change my a/c from ICICI to IOB where I still hold a normal savings a/c.
Hi Deepu,
Its upto you to declare your residential status and trade accordingly. You could continue to trade as a Resident Indian, but its not in your best interest to do so since your residential status has changed.
Hi venu madhav,
Its really nice article…
I am having NRE DEMAT and trading account with HDFC .
Is it permitted for NRI to open another trading account? ,
If so , what r the requirements to open trading a/c with ZERODHA and how could I map my HDFC DEMAT with ZERODA trading?
As per norm, you cannot have trading accounts with 2 different brokers. The PIS permission will be held only in respect of one bank/broker. You’d have to obtain a NOC from your older broker and provide it to your Bank asking them to map your account to Zerodha’s trading account. The documents required are mentioned above in the blog.
Hi,
I would like to know by when YES BANK PIS holders will be able to trade with Zerodha. Please reply.
Prathap, yes bank might take longer.
If i am present in india during the process of opening the account then do i still need to submit attested copies from embassy of pan,passport and address proof?
If you’re coming to India and carrying all originals with you, meeting one of our representatives for account opening, you needn’t get it attested.
Hi
I am NRI and have 3-in 1(Bank Account + Trading Account + Demat Account) with ICICI but cost of trading i.e is commission charged by ICICI is very very high . SO I want to open Trading account with Zerodha. I have couple of queries
1) Do I need to open a new Demat Account as well if I open Trading account with Zerodha. Will that mean I need to again get PIS permission letter
2.) I have NRE account with Yes bank & Bank of INdia. NRO account ICICI . Can these be linked to Zerodha Trading account
3. In case if I open account with Zerodha what happens to the shares I brought through ICICI Demat? ,Can I transfer the shares I bought in ICICI demat to another demat account
1) Yes, you’d have to open a new trading & demat account at Zerodha. Yes, PIS permission letter is required.
2) For now we’re supporting if you have an account at Axis/HDFC Bank. You’d have to open an account with any of these banks. We could help you with account opening.
3) You can transfer shares to the demat account that you’d open with Zerodha.
Hi,
I’m a NRI based in middle east. I have few queries.
1. Is there any option that i can try your platform prior to joining, like a demo version.
2. Can i open PIS and Demat account for my children 7 and 2 yrs old. Is there any additional restrictions in case of Minors as NRIs.
Hi Thomas,
1. Please send an email to [email protected] and we’ll share the demo credentials with you.
2. We aren’t opening any minor accounts for now.
Hi, Have you tied up with ICICI Bank as well? if not, when do you think you will do it as I want to open NRI account but have bank accounts with only ICICI currently.
Currently we’re facilitating only account holders of Axis and HDFC banks. We could help you get your account opened with any of them.
Hi, Could you give me a contact name and email. I had written to the person you mentioned somewhere in this thread but he didnt reply .
Regards,
Sunny
Hello
I currently have a NRi trading account with HDFC. They currently charge .75% brokerage for buy/sell. Is my understanding right that if trade through Zerodha, I only get charged Rs.200 per order ?
Thanks
Yup. We’re currently charging Rs.200/order as brokerage for NRI clients. Other statutory levies will be charged. You can check our brokerage calculator here: https://zerodha.com/brokerage-calculator
I have a NRI 3 IN 1 Account with ICICI bank. Can you please let me know can i open a share trading account with zerodha as a Indian resident. There would be any tax issues if i start trading as a indian resident? can i open an trading with you in my brothers name. He is not working. Any tax issues for that? pls reply.
Regards
Jacob
If you are a NRI, you can’t open an account as a normal resident. yes your brother can. You could gift/lend money to your brother.
Dear Sir,
As a Indian resident what documents needed to open an account with Zerodha? Pls reply.
Check this post: http://zerodha.com/z-connect/zerodha/open-an-account/account-opening-documentation-charges
Dear Nithin,
I have NRE 3 in 1 account with ICICI Bank. Because of high brokerage fees i am decided to open a trading account with Zerodha. Pls help my following queries.
1. I have a PIS account with ICICI Bank. If i want to open a PIS Account with HDFC you want me to cancel the ICICI bank PIS account first or not
2. Is it possible i can use ICICI bank nre and nro account and open a PIS account with HDFC Bank?
3. How to transfer shares from my icici bank to my new account.
Expecting your reply soon,
Regards
Jacob Francis
1) PIS with ICICI has to be closed and a new account with HDFC bank has to be opened. ICICI bank will issue an NOC and a statement of holding which is to be intimated to your new bank.
2) No.
3) Once your new demat account is opened, you can transfer shares by using the Delivery Instruction Slip that you’d have got while opening your ICICI demat account.
Hi Venu,
Thanks for your reply.
So I have to open NRE/NRO account and NRE PIS Account with HDFC Bank?
My another doubt is if i cancel my NRE PIS with ICICI bank am i able to transfer my shares from icici BANK to my new account?
Expecting your reply soon
Regards
jacob
Yes, ICICI will have to transfer shares to your new demat account. At the time of closing your account with ICICI, do ask them to give you a Statement of holdings which you’ll have to submit to HDFC.
As a NRI what kind of account i have not open in HDFC Bank to trade with Zerodha?
Your detailed reply will be appreciated.
Rgds
Deepak
Hi Veenu or Deepak,
I am trying to open an account with HDFC Bank. Two times i rang them they said they are going to give me a call within 2 days till date i have not received any call from there side. Can you pls give me a contact name for opening for HDFC bank to open NRI/NRO PINS ACCOUNT. Pls give me a contact name and email address so that i can contact them to open a account.
Regards
jacob
Name: Vinay Kumar
Email ID: [email protected]
Mobile No. +91-9986911445
Land Line no. 080-66310636
Dear Venu,
Thank you for the address and I already sent a mail to Mr. Vinay Kumar.
As a NRE i have to open PIS account or PINS account? What is difference between PIS account and PINS account?
A reply would be highly appreciated.
Regards
jacob
PINS: Portfolio INvestment Scheme
PIS: Portfolio Investment Scheme
Both are same accounts.
Thank you Venu
Dear Mr.Venu,
Please confirm whether my existing ICICI NRE PIS account can be used for trading with Zerodha.
Also confirm whether it is possible to have two trading accounts linked with the above ICICI PIS account (provided ICICI bank does not have any objection).
Your quick response will be appreciated.
Regards
SRIRAM
You’d have to have an account with Axis/HDFC for you to be able to trade Zerodha.
Hi Venu
I have opened a trading account with Axis Bank. As such they will be getting the PIS account done for this. Now to get a trading account opened with Zerodha do I need another PIS. What document do you need for this?
Also was told by Axis Bank that for each trade they will charge a PIS reporting fee of INR 150. Worse still I have no control over the no. of trades that may happen on a single order placed by me and have no way of predicting how much I will be charged in terms of PIS reporting fees for a single order as the order might get executed in multiple trades. Please advise whether you have any other charges like this.
Nope, the same PIS account will suffice.
PIS reporting fee is normally charged per contract note. So in a day if you’ve had multiple trades, you’d still be charged Rs.150. If you’ve bought and sold different scrips, we’d have to send them 2 contract notes (Buy CN and Sell CN) and the charges would then be Rs.300/-
I already have an nre demat account with another bank in India.
Should I complete forms to open an nre demat account with Zerodha
Please advise
Thank you
Yes, you will need to open a fresh demat with us.
Hi,
I am from Bahrain. I am looking forward to open an NRI trading a/c. I have an NRE a/c with HDFC bank and i was looking to open PIS a/c. In addition to PIS reporting charge they have some processing charges ranging from 250-1000,lots of hidden cost. Just want to have some knowledge regarding this before going ahead. Is it wise to have PIS with HDFC or Axis. Yes bank offers low PIS charge, does Zerodha has tie up with Yes bank??Please help me. Thank you.
We aren’t tied up with Yes Bank yet. We are providing access to clients of Axis and HDFC bank. You may contact Naveen from HDFC Bank on 9379807762 and tell him that you’d want to be trading with Zerodha and negotiate a deal.
OK Mr.Venu …thank you.
You can use Pi, our latest desktop trading platform. To download Pi, login to https://q.zerodha.com/ and click on Pi.
If you’d still like to download ZT, here’s the link: https://www.dropbox.com/s/g4fcmau273kpbhq/ZerodhaTrader_3.11.2.1.exe?raw=1
Hi Team,
I have a just trading account with Zerodha which i opened when i was a resident back in 2010. Now I hold a NRI status. Most of my bank accounts in India now are NRE/NRO accounts. However my SBI bank account is still in resident status(I did not convert it to NRO/NRE yet) which is linked to my Zerodha trading account too. Now i want to participate in Equity in NSE/BSE for long term investements. I know that i might need a Demat account to do that as I currently hold only Trading account with Zerodha. Kindly let me know which kind of account and what bank account i need to use in order to participate in Equity market.
Regards,
Sunil
If you’re going to open your demat account as a resident, you’ll have to give all documents as applicable to a resident.
* Copy of PAN
* Copy of Address Proof
* Personal cancelled check leaf
* Demat Account opening form
Dear Venu,
Sunil was having a zerodha trading account, that means he must be having a demat account ,Linked to SBI. As he mentioned other banks are converted to NRE/NRO expect SBI. How he can open a resident demat account despite his status is NRI ?
If this is possible, are there any consequences
Kindly reply
Hi,
I am a resident of Hyderabad city but an OCI card holder.
Am I allowed to open a resident trading and demat account as I am NOT currently holding Indian citizenship or Do I still need to go through PIS route.
Regards,
Sri
You will still have to come through the PIS route.
Hi Sri,
You’ll have to make all investments through the PIS route.
I do not have NRE/NRO account (as I am resident) and hence cannot get a PIS for that. So how can I? Or I am not eligible for trading at all ?
Hmm.. you must have a bank account right? Is that a resident savings bank account? If it is, you can open a trading account as a resident itself.
Hi Nithin,
I have a resident saving account with HDFC bank. Also I am not allowed to have a NRE/NRO as I am a resident. I understand I can open and none will ask me about my citizenship/OCI status. Just worried about the legal aspect of it. As an OCI holder and a as resident is actually allowed to operate as a normal resident citizen.
Regards,
Sri
Hmm.. tricky, but if u have opened a bank account as resident, my guess is u can do the same with the trading account. Best to confirm with ur CA.
I am soon going to be NRE.
Can I gift my holdings as resident indian now to my wife who remains resident with resident status DEMAT.
Yes.
Can NRIs use shares as a margin to buy/sell options?
NRI’s have to trade through a custodian. The funds are kept with the custodian. As such, a broker cannot give you margins against shares but a custodian can.
Sir
From the blogs above, it appears that zerodha accepts clients based in USA. Is that correct?
Currently my NRO account and Demat account are with HDFC Bank. Will Zerodha have a problem with it or do I have to open another demat account with you?
Your advice would be appreciated. Thanks.
Yes, We allow clients from NRI’s based out of US to trade. However it’ll have to be done through the PIS route. You can open a trading account with us and map your HDFC demat. The only restriction is that you can only buy stocks from Zerodha. If you want to buy & sell using Zerodha’s platform, you have to open a demat account with us.
Thanks for the quick advice. One more clarification: what does “you can only buy stocks from Zerodha” mean?
If you don’t have a demat opened with us, when you buy stocks we will send it to the other demat. But when you are trying to sell, we will not have any access to debit these stocks, so u will have to use the other broker (with whom u have opened this demat)
Thank you. I will do the needful.
Hi Guys,
I have been lurking around your website for a few months now, and am completely awestruck by the breadth and depth of your collective knowledge and dedication. I sincerely believe that Zerodha can and will have the same effect on the Indian economy, as the invention of the wheel had on humanity itself. Amazing job guys, just mindblowing!!!
I myself, however am forced to sit on the sidelines and just hungrily gaze on this revolution, just because I am an NRI ((NON RELIABLE INDIAN)) as per the government’s outlook, therefore I need to park 25 lac rupees before I can even think about entering the market.,,,,,,,,,,,,grrrrrrrrrrrrrrrrr
anyhows, going through this page gave me an idea, what if I were to gift/donate/lend/shove-down-their-throat to someone in India, and then let them do the trading, will that person have any kind of tax implications for receiving 1 lac+ rupees every month from overseas?
If the answer to the above question is yes, then all my dreams are shattered and thus I will drown all my sorrows in the bottle for the rest of eternity
If the answer to the above question is no, then please expect someone at your doorsteps first thing tomorrow morning, who will be signing up to trade
help me out guys, this bureaucratic mumbo jumbo is a pain in the wrong place.
Your friendly neighborhood NRI (Non Reliable Indian)
PS: how do you guys even get the time to answer sooooo many questions?? are you sure that you have only 2 hands and not anymore, just curious.
Hey Tabz, Thanks. 🙂
You can definitely gift money to your relative/anyone u trust and trading can open on that account. The person receiving if he is showing money received as loan, there will be no tax implications. If he is profitable, he can even give interest to you and claim as expense (you will have to pay taxes then though :)). But if a person is trading actively, he is required to file the returns. This is kinda grey area, so best to consult a CA.
Dear All, I have read your article and it’s very useful.
Please answer my below questions,
3 years before i have opened demat & trading account (end up with loss) and then stopped trading for last 1.5 years.
Before 6 months i turned to an NRI and started trading in equities with the same trading account.
Please let me know whether i can continue the same trading account or i should open new NRE trading account. I checked with many persons and no one able to tell clearly. Please clarify.
Thanks in advance
You’ll have to close down your existing account and open a new account. You have to do all your investments through the PIS route. Also note that the brokerage for all NRI trades is Rs.200/order
Technically you have to open a new NRE trading and bank account also.
Thanks Venu & Nithin for the quick response.
Want to know whether i will get any penalty from the Indian Govt for trading last 6 months as NRI.
What will happened if i hold the existing shares or investing in new shares ?
It could be great if you reply for the above questions. Thanks in advance.
There is nothing like a penalty for this. Best to change the status of your bank and equity account to NRI and start investing through that.
For Delivery based trade of normal trading account， Zerodha not charging any brokerage. So is there any change for the fee structure for NRI account?
Surya, for NRI the charges will remain as before. The support process for clearing NRI trades involves incremental effort.
Hi, I am an NRI and currently do not have acount with Zerodha. If I would like to trade only in F&O, do I still need PIS or is it not required as I would not buy Equities.?
In that case, can I open a F&O account directly?
Regards,
Sunny
It is quite painful for NRI’s to trade in F&O. You will need to come through the custodial services route. You need to get a CP code from a custodian, and execute trade through this route. Unless the capital deployed is atleast $100,000 it wouldn’t make sense.
Hi,
100K$ is a big amount. Is that a threshold from Zerodha to provide Custodial services?
Let say If I would like to begin with 10-15K$, could this route be still considered?
Regards,
Sunny
We could put you through to someone who could help you with this. You can drop me an email – [email protected].
Hi
I am an NRI and seriously contemplating
movng to Zerodha. Though I am quiet satisfied with current broker with regard to IOS App design & ease, transparency and service. However currently biggest concern is 1) How is your IOS App (with regard to ease of buying/selling) (prefer to try it with a mock account)
2) Can I keep my PIS with Axis Bank linked with 2 brokers at a time?
3) The brokerage is Rs.200/executed order for both Equity & Equity F&O. If this charge of Rs 200 is per contract basis than makes sense. Per your brokerage structure, it looks like that if I buy or sell shares of 5 different companies worth Rs 25 lacs then I will be charged Rs1000/- (5 x 200). This won’t serve much purpose. Appreciate your agreeing to Rs 200 per contract basis
Thank you, ASMAHADI
1. The current IOS app is vendor product, just about average. Our in house app Kite mobile, will be out soon, turning out like Kite Web probably the best one out there.
2. Yes
3. Yeah currently charging Rs 200 per executed order. If you buy For Rs 25lks of stocks, considering the traditional brokers (0.1% to 0.5%), the cost would be between Rs 2500 to Rs 12500 in brokerage. Rs 200 still would work out much cheaper. For us there is a big incremental cost that goes in supporting NRI customer.
Hi Nithin
Possible to have a reference of an NRI client who can share experience with me.
Thank you,
hI I HAVE A NRO F&o ACCOUNT WITH ANGEL, AND MAINTAIN NRO ACCOUNT(NON REPATRIABLE) IN AXIS.. HOW LOng WILLL IT TAKE TO START TRADING WITH YOU I AM PLANNING TO SHUT DOWN THE ANGEL ACCOUNT.. and what are the formalities.????
You’d have to obtain a NOC from your older broker and provide it to your Bank asking them to map your account to Zerodha’s trading account. If all the documents are in place we’ll open your account within 48 hours.
Hi Nitin,
For NRI in USA, just want to double check on the taxation.
1. Longterm holdings attract ZERO for NRI customers aswell correct?
2. The ZERO tax is applicable only in India then what about the taxes in USA for the gains? As I understand, the taxes would still be applicable in USA as there is no ZERO long term gain taxes, Is that correct understanding? OR the gains would not attract taxes in USA, due to some agreement between the countries?
Thanks,
Venkat
1. Yes
2. I guess you have read about FATCA, the new act by USA. Check this link, it explains it well. The gains would attract taxes in USA.
Thanks Nitin.
Does long term capital gains tax still zero or exempt for NRI? or is it not updated correctly in this zerodha page?
If NRI sells some shares today, he can purchase another shares same day against this sell proceeds ?
Can i trade using NRE account not NRO ? In case of dividends from shares which is in INR,will it be allowed to deposit in NRE account ?
Yes, you can trade using NRE account. Dividends will be credited to NRE savings account.
1. Can i transfer the shares which i hold in Resident trading/demat account after opening NRI account in my name ? Any charges/taxes applicable ?
2. Is it possible and what is charge if one need to close Resident demat account and transfer shares as gift to NRI of family member ?
3. what is charge if one need to close NRI account and transfer shares to,
a) own Resident account
b) gift to family resident account holders?
4. When NRI becomes Resident,can it be possible to convert the same account to resident account and retain all my holdings,any charges/taxes applicable ?
5. Tax-implications for long-term or short-term capital again for NRI trading/demat account compared to Resident account holder?
Any other bank/brokerage/govt. legal charges applicable in contrast to Resident account.
6. what proof will be given for Short term capital gain TDS which can be used to avoid Double tax while filing foreign tax ? Also what proof is given for long-term capital gain?
1. Yes, you can transfer shares from your resident demat account to your own non resident trading account, there are no charges if you’re closing your resident account and then initiating transfer.
2. Transaction charges will apply in case you’re transferring to someone else. Charges depends on the DP you have an account with.
3. a) No charges b) Charges depends on the DP where you have your demat account
4. No. You have to close your existing demat and open new demat with residential status = Non resident. Conversion isn’t possible.
5. STCG is 15%, LTCG is exempt for NRI’s. STCG exemption is available if STCG is less than Basic Exemption Limit if residential status is resident. No such benefit for NRI.
6. TDS certificate stating TDS has been deducted and you can refer to DTAA with the respective country
“Note: Copy of PAN card, Passport, and Foreign address proof to be notarized by Indian Embassy”
If I am in India for a short while and want to open the account during my stay, can I have these documents attested by a local (Indian) authority? My foreign address is noted in my passport, is that adequate proof?
Yes, if you’re meeting someone in person here and are carrying originals, there’s no need to get it notarized. We’ll need a proof of foreign address – something like a bank statement, phone bill etc.
Hi
I have a normal trading account with Zerodha and a savings bank account in India.
I have now moved to US. As I understand, I have to convert my bank accounts to NRE/NRO.
I do NOT want to sell my existing shares, as selling will attract US taxes upto 30%.
The question is, how do I transfer my shares from Resident Account to the NRO Account?
Can it be done online and what is the process around the same?
Thanks,
Darshan
Also, I am planning to have PNB Bank’s NRO account. Does Zerodha have a tie up with it for transactions?
If not, how can I still do my transactions on Zerodha with PNB Bank’s account.
Hi, We’re currently empanelled with Axis/HDFC Bank. You’ll have to have an account at one of these banks in order to be able to trade through Zerodha.
Conversion of account isn’t possible. You’ll have to close your account and open a new account with new residential status. Shares can be transferred to your NRO account only using a DIS Slip.
Resident DP where you’re holding shares will issue a letter to your PIS bank informing of the shares that are being transferred. This can’t be done online
Hi Nitin/Venu,
1. USA based NRIs need to send notarized copies to open account with Zerodha. When you say *notarized copies* should this be *photocopied* documents after getting them notarized from Embassy? OR you need original notary stamped docs?
2. I currently have NRE account with Icici, but since you want it to be HDFC/AXIS, can I open NRE/NRO account by being in USA? Any contact who can guide on opening NRE account and getting PIS letter would be greatly appreciated.
3. Which bank works out cheaper interms of charges, HDFC or AXIS? Rough guidance would be helpful.
Thanks
Venkat
Hi Guys,
I am a NRI based out of Singapore. I want to open a Zerodha account but I have a few questions:
1. I have a resident India DEMAT account from ICICI direct. I have some shares in that account. I understand that being an NRI you can trade trough the PIS account. For all shares which are purchased before NRI status can be kept as is. My question is do I have to open another non PIS account to transfer the current shares from ICICI to Zerodha? Can you explain me the procedure? are you aware if ICICI charges any transfer fees? Thanks for letting me know.
I am really happy to see the good work and info from you guys.
Suman.
Hi Suman,
You’ll have to first open a trading and demat NRI account through the PIS route. Once your account is opened, you’ll have to approach ICICI bank and request for account closure cum transfer of shares held in resident account. ICICI will initiate transfer of shares to your new NRO demat account. Subsequantly you’ll also have to obtain a letter from ICICI mentioning the quantity of shares transferred and provide it to us. Closure cum transfer is done free of cost. Any AMC due has to be paid.
Hi Venu,
Thanks for the quick response.
How do i open the NRO DEMAT account? I am assuming this to be different from the PIS DEMAT one?
Suman
You can open either/and NRE/NRO account with a Bank. The classification will be based on which bank account you map to your trading & demat account. All investments are routed through PIS itself.
Hi Venu,
Sorry to bother again.
I already have a NRO account from HDFc, so in this case I will ask for PIS application from HDFC for the NRI trading. Once that is received then I will send the completed form for the account opening to Zerodha. On opening the account my understanding is that I will be able to invest (buy and sell) as a NRI going forward. For the stocks which are already in the Redsident India DEMAT account needs to be transferred to an account where I can only sell. Is this the NRO account? Since I will be using my NRO bank account for the NRI DEMAT accounnt for future trading – which account will hold my current shares? Will there be a single account for both?
You have to designate your NRO savings account as PIS account by submitting an application to HDFC Bank. After that you’ll open a trading and demat account at Zerodha and transfer shares from your existing demat to Zerodha demat by submitting a DIS (Delivery Instruction Slip) to ICICI demat.
For the stocks which are already in the Redsident India DEMAT account needs to be transferred to an account where I can only sell. Is this the NRO account?
Yes, it will be the demat account that you map with Zerodha
Single account will hold all your shares
Hi,
Can one transfer resident stocks(via gift) to NRE PIS trading account?
Please let me know that are the documents required to open NRE account and subsequent PIS?
To open NRE trading account, should I need to mail the notarized documents OR sending via email or uploading the electronic copies is sufficient?
Thanks.
Transfer to NRE isn’t possible. Transfer can be made only to NRO account.
We’ll need hardcopies of documents.
Hi Nitin,
I am an NRI who is keen to on doing Intra day trading in F&O. As I understand the process of opening trading account for an NRI to do intra day seems extremely difficult.
The other option as I read above is to open a joint account with an Indian resident/relative and do intra day based on the normal resident account.
Is this possible , who can advise me on the legalities of this ?
Secondly, can the funds in the account be repatriated back abroad.
thanks
RB
Hi,
do you have any idea how time it takes to get a PIS document through axis bank. I checked the bank website and they don’t have any info on that… Also you says Copy of PAN card, Passport, and Foreign address proof to be notarized by Indian Embassy but the axis bank website don’t mention that anywhere… I’m confused now whether it is really required or not.
PS: Zerodha rocks and i’m coming to India next month and want to open an NRI trading & demat account.
Thanks
Raghav
We can put you through to the concerned people in Axis who can help you get your account opened faster. Do send an email to [email protected]/[email protected] and we’ll get back to you with the contact details.
The attestation from the Indian embassy will be required only you’re not meeting us at the time of account opening. If you’re meeting us to get your account opened, no attestation required.
Hello there,
In order to open the trading/demat accounts at Zerodha, you mentioned the relevant needed documents to be notary signed by the Indian embassy. Will it be ok if i get them notarized from a notary public in the bank where i have a savings account here?
Yes, you can get it done in the Bank there provided such bank has operations in India. Else, you can’t.
If you’re from Dubai or Abu Dhabi, you can get it done through IVS global services
Hi Venu,
thanks much. I live in the USA. Do you know if bank of america or chase bank have branches in India?
I did a search on the internet and couldn’t find these banks to have any retail operations in India.
Hi Venu,
Thanks. I am in the process of opening up an NRE account with Axis bank and will soon be joining your customer base. Appreciate the help.
I see Bank of america has branch in India
http://www.bofaml.com/en-us/content/apac-india.html
Hi Venu,
I realized after taking note of Arun’s comment above. Bank of America is incorporated in the USA, and operates through its branches in India. It commenced operations in India through its Mumbai branch in 1964. Bank of America offers a comprehensive suite of financial products and solutions to top Indian Corporates, Multinationals, Multilateral agencies & Foreign Government entities and Financial Institutions.
So does it mean that i can get my documents notarized from a notary public of a local BofA bank?
Appreciate the help.
Thanks
What I meant was retail operations. BoA doesn’t have retail operation in India. Let me check with the concerned regulators and get back to you in sometime.
Hi Venu,
Thanks much. Looking forward to hearing from you….
Hi Venu,
did you hear anything from regulators on this?
thanks
Do you have a tie-up with SBI Securities? I have a PIS account with them which I would want to move over to Zerodha. Thanks,
Currently not, but we are looking at starting off soon.
hi nithin,
i just came outside india( 4 month ago) i have trading account (F&O and mcx) with zerodha but no demat account. i want to open demat account now. what is best for me if i still able to open demat acc as resident indian .
and what if i want to remain resident indian status for trading and investing in equity. fill the IT RETURN as resident indian . if this is legal .
actually i’m outside india for job on 2 year contract right now i’m not sure how long i will stay outside india, may be 2 years only or may 5-10 years .
Technically if you stay outside India for more than 6 months, you will become a NRI. We as Zerodha will not get to know unless you declare yourself as NRI, so until then you can continue to use the normal F&O trading account, and you can also open a new demat as Indian resident. Login to https://q.zerodha.com/user/profile/ and get a pre-printed demat form.
one more thing my status with my hdfc bank is residential i have not changed my staus to nri anywhere.
Hi Mr. Venu,
I have demat and trading account with IIFl. For more than 6 years it was inactive after i experienced a huge loss. Last year i became NRI. The SB account linked to demat was converted to NRO and simultaneously new NRE was created along with that.
I started to trade by transferring amounts from NRE to NRO and then to trading account with broker. When i contacted IIFl to ask them whether i need to change my account status from resident to NRI , they told me that it is not required which by now i come to know is the false information given to me.
I am going to come back to India in oct 2016 and my status will change back to Resident of India from NRI. Now it is mandatory that i have to change my status or can i continue to trade as i am doing it now.
Will there be any legal issues to be confronted by me while filing my IT returns…? How to tackle this situation.
Please let me have a good advise on this…
Ideally you should change the account to NRI and then back to resident when you are here in India. The issue won’t be while filing returns, but in case there is a scrutiny, you will need to explain why the trading account was not converted. Best to do it right away.
Who will compute and apply TDS for short term capital gained (profits) in case of a NRI trading through Zerodha and reporting through Axis PIS account ?
The computation and deduction will be done by the Bank where you’re holding the PIS account.
Hi. Nitin.
Please let me know how to regularize it now.
Regards,
Parthi.
Hi,
Do you have tie with ICICI Bank?
Best Regards
Sammbu
Not currently. We should soon.
Dear Sir,
I am moving to the US next month and wanted to know if it is legal to continue trading using my current Zerodha account which is linked to my HDFC Savings Account. From what i read and understand from the answers provided in this section, it would be illegal to continue trading using this account after 6 months of my stay in the United States, post which i become an NRI. Please confirm the same, as different opinions are coming in from different quarters. I would want everything to be legal and proper, pls advise.
It is best you open a new NRI trading and demat once you become an NRI.
Thanks for that response Mr. Kamat and do you have any idea on the time limit on the tenure after which a person is categorized as a NRI
180 days.
Your site says: Stock holding of an NRI can’t exceed 10% in any Indian listed company.
I think individual NRI account cannot have more than 5% and ALL NRI combined cannot have more than 10%.
Long and Short term gains have been defined for more than 1 year and less than 1 year. What about exact 1 year?
RBI sets the limits on this. Here’s the list: https://www.rbi.org.in/Scripts/BS_FiiUSer.aspx
Anything less than or equal to one year will be considered Short term.
Thanks for clarification.
I have some shares purchased through IPO. Shares of one company were dematted and are with ICICI Direct. The other are still not in my hand because new shares de-valued shares have not come to me yet.
Can ZERODHA handle these non-PIS shares also. All are from NRE funds.
What do you mean when you say “handle” these shares? You can get them dematerialised with ICICI and then transfer them to your new Zerodha demat account.
Dear Venu,
Thanks for the valuable Info.
I am an NRE and my wife is also with me by last 5 years ( she is not working in abroad and a house wife, but she also is non resident as per income tax rules (Days Calculation of residence) , she does not have any NRE / NRO Bank account and remittance to India) and we had a resident Bank account opened before 5 years and linked the account with another share broker . can we use the bank account and DP account with the broker , now for buying shares from online market. if not legal,
What we need to do to trade online ,
I want to transfer my NRE fund to her Resident bank account and do the trade through DP account created earlier. (also We have some shares we bought earlier )
Please help us
Waiting for your kind reply
The onus of declaring one’s right residential status vests entirely on the client. It wouldn’t be right to trade as a resident in case the residential status is that of an NRI.
You’ll have to open a new NRI account at Zerodha.
please see the reply i got from ICICI direct regarding investing in Indian mutual funds for an NRI in USA, it clearly says that NRIs based out of USA are not allowed to directly invest in the mutual funds/shares in Indian companies. your reply to others seems to indicate it is perfectly legal to do so. Can you please elaborate and clarify?
Renuka
Dear Mr. Prasad,
We understand your concern.
With reference to your e-mail, this is to inform you that the demat accounts are opened as per residential status and an investor can open an NRI Demat / Trading Account if he is staying abroad for more than 182 days. The resident Demat Account if any, cannot be transferred to NRI Demat Account however, the new Demat Account can be opened by closing the existing Demat Account under resident status and transferring shares to newly opened Demat Account under NRI status.
If your status is NRI, it is preferable to trade through an NRI Demat Account as it may lead to tax issues and legal bottlenecks (SEBI & RBI Regulations) on a future date.
However, it is mandatory for a NRI customer to trade in the secondary market only through a PINS designated Account. NRI customer needs to obtain the RBI PINS approval from an authorized dealer (ICICI Bank) before he transacts in the secondary market. All such transactions need to be reported by the bank to RBI on daily basis.
Further, as per the regulatory guidelines if your status has been change from Resident Indian to NRI then you need to have the NRI Demat and Trading Account. However you will not be able to convert your existing Resident Indian Demat and Trading Account into NRI status through online process due to the reason you are staying in USA. Kindly check the below mentioned details regarding why you will not be able to convert your Account through online.
ICICI provides you with the unique facility of a 3 in 1 Account consisting of a Demat, Savings and Trading Account. This Account helps you in buying and selling shares in the Indian stock market through our portal http://www.icicidirect.com for NRI customers. However, we would be unable to open Investment Account for USA customer as per process.
The United States Securities Exchange Commission (SEC) Rules, requires federal as well as state-wise registration of issuers of securities. This means that if a California resident wants to trade in a scrip (say Reliance Industries), the scrip itself should be registered with SEC and the state that the customer resides in i.e. California. Since, Indian shares are not registered with SEC and the different states, as per SEC rules, they are not eligible to be offered to US residents.
Hence, ICICI Group (i.e. ICICI Bank Demat services and ICICI Securities) do not offer depository/broking services to US residents online.
However, we can offer NRI Trading Account to you when you visit to India. You need to visit nearest ICICI Direct Center for getting NRI Trading Account opened.
The list of centers may be searched form the link: https://secure.icicidirect.com/IDirectTrading/customer/customeroverview.aspx
We look forward to more opportunities to be of service to you.
Sincerely,
Customer Service Officer
ICICI Securities Limited
Hi Mr.Prasad,
I’m not sure why the other broker isn’t agreeing to open an account and service you. We’ve checked with the Exchanges and have ascertained that you can get started with your trading at Zerodha in the capacity of an NRI. The blog mentions the process to open your account with us. Looking forward to seeing you trade with Zerodha soon!
Hi Venu
the problem seems to be from the US SEC side. is it possible to provide some references of your other clients in USA?
Renuka
CAN ANY ONE ALSO HELP ME OUT BY GIVING AN EXAMPLE OF THE TRADING A STOCK AFTER DOING ALL TAXES AND CHARGES, SINCE I AM NEWBIE TO THIS…
Can you check this module on taxation http://zerodha.com/varsity/module/markets-and-taxation/, everything you need to know is on it.
The page said:
“Trading Process
Allocate funds from your NRE/NRO bank account to your PIS.
The bank now informs the brokerage firm on how much funds you have allocated. This is then updated on your trading account.”
I have two questions for the above:
Suppose I have both NRE and PIS accounts with AXIS. So I move Rs 10000 from NRE to PIS account, and using Rs 10000, I want to do trading on Zerodha’ platform. My questions are: (a) How would Axis Bank know that it has to inform Zerodha that I have Rs 1000 ready for trading. Axis bank holds my PIS account, but it does not know that Zerodha is my broker. (b) how much time will the bank take to inform Zerodha?
You’ve to inform Axis Bank that Zerodha is your broker and authorize them to share the balance with the broker. Once such an authorization is given by you, the bank shares the balance in your PIS account with the broker on a daily basis. Based on the confirmation given by the Bank, the broker updates your trading limits.
I have my PINS account with icici and I use service of icicidirect. I am considering to switch because of pathetic customer service.
How can I switch the PINS account from one bank to other? (HDFC or Axis in this case)
Venu,
Can you let me know how the taxes are calculated on F&O delivery based trading for NRI’s?
For Ex: If I gain 10K in one trade and lost 5K in another trade, how are the taxes calculated?
Also 200/- per order is for both buying and selling or is it only for one side?
F&O trading is considered as a business income, so you have to pay taxes according to the IT slab you fall in. Check this module. So on your net profit which is 5k, you have to pay tax based on whatever slab you are on.
Please clarify how the brokerage is calculated for NRI (delivery based) for the following scenario;
-Limit order for 2000 shares of BUY at fixed price and it got executed with different sizes and time.
If i modify the order later with price limit then what happen
It is Rs 200 per executed order, so it doesn’t matter if it executes in multiple trades. When you modify an order, the order number doesn’t change. The brokerage will be charged only on the original order.
Hi I am an nri and currently have a pis account with federal bank linked to my nro account.
Can I use the same nro pis account with federal bank to open account with zerodha. Kindly revert back.
Jayakrishnan, we currently don’t have a tieup with Fedbank. Currently only with HDFC and Axis. We are looking at adding more banks soon.
Where/how should we send these documents?
You can courier us the forms to this address: Zerodha, #153/154, 4th Cross, Dollars Colony, Opp. Clarence Public School, J.P Nagar 4th Phase, Bangalore – 560078
Thank you
Hello,
I recently opened up an NRE (gosh it took two months!!) account and when i asked the customer service at the designated axis bank branch, the representative responded that Axis does NOT do PIS account for US based NRIs.
Is it true. Its just only getting frustrating with Axis when it comes to creating PIS. They clearly said they wont let US based NRIs open trading/demat account with them due to the fact that the bank would then be obliged tor report to US SEC on those earnings. How about zerodha? Do you report to US SEC or is it done at RBI level?
As i see, almost every bank in India does not cater to US based NRIs for trading on indian markets (i.e. to open demat/trading accounts). If i remember correctly, the other brokerage Sharekhan does not entertain US based NRIs either. Looks like its only Zerodha!
your comments are much appreciated.
thanks
Sam
I’m not sure who you’re corresponding with at Axis Bank, but both the Bombay & Kochi branch who we interact with, seemed keen on opening and servicing accounts for NRI’s based out of the US.
Well, I guess I need to continue hounding to get the PIS open at Axis.
Thanks for the quick response. Hope to open up an account in your brokerage soon.
Thanks
Sam
hi…I am on student visa in Europe. I still hold indian citizenship. Which account do I have to open?
If your residential status is NRI, you will need to open NRI account. Otherwise you can open a normal account.
Hi Team,
I am in Singapore since May 2010, and last 3 -4 years I have been trading through different brokers in Indian Equity & FNO too.
I never obtained PIS and other NRI related documents to trade on Indian Exchange.
Now I have a query from Income Tax asking for the details of the transaction since I am NRI i didn’t filed the returns in India.
Can you please give details what would be the consequences for this
hmm.. if there have been any tax that you have evaded intentionally, there would be a penalty on that. IF there is no tax that is evaded, I am guessing you can explain it to the department that you didn’t know about it and not really have a penalty.
Hello Nithin/Venu – I have couple of question and would appreciate the response.
Do you guys have started working with Yes bank for PIS/NRE account for equity trading? I read somewhere in this thread last year that it is in process if not done by now any tentative timeline?
Second you have mentioned in the thread to trade in derivative we need to obtain a custodian code from clearing member in your case IL&FS and minimum commitment they are asking for is 25L, is there any change in that stand? I mean like 5L or so? I checked with other broker (tradeplusonline) they have tie up with stock holding of India for NRI customer for custodian and there is no minimum commitment required there, do you guys use stock holding of India for clearing?
Appreciate the response
Arun
Not yet with Yes bank.
You can speak to our team, there is no commitment as such.
Hi Nithin – Thanks for the response, is there anyone particular I should reach out to or just call the helpline number?
Also is the brokerage flat Rs. 200 for future and options or different.
Any transaction charges from IL&FS?
Thanks,
Arun
Yes brokerage is flat Rs 200 for F&O. Will get someone to email you back with details.
hello sir
what type of account need to 1 have who are not able to maintain nri status all the time. as in the case of those who are working on ships as seaman.
kindly advise.
another question in my mind is what is if the residential status changes after opening the account.
kindly advise.
You will have to change the status of all your accounts, from bank to trading.
Is PAN card mandatory for NRI to open PIS or NRE account? If the NRI has no tax liabilities what is the need for having a PAN Card?
Yes PAN is mandatory if no TAX to be paid.
Thanks. But you mean for NRIs too? I don’t have any tax laibilities or taxable income at home. However, if it is mandatory can zerodha or anyone else can help me obtain this, since i am being overseas?
Yes, unlike what most people think, PAN is not meant only if you have a tax liability. Zerodha can’t really arrange for this, but if you google you will find many who help for NRI.
thanks. got it
Hi,
I have a NRO account with HDFC. Can I start trading with Zerodah? I have a MOSL demat/trading account which I am not satisfied with. Currently I am a permanent resident of Canada.
Yes, you can. We have a tie up with HDFC.
Hello Zerodha – I spoke to couple of different broker about NRI account including ICICI and while for buying in big amount and more than 1 lot for Future your brokerage is cheaper but if someone say 25K in different equity your brokerage of 200 is even costlier than ICICI even at their highest price of 1.25% and also as they are the bank I am not paying reporting/transaction charges of another Rs.100 same in the case of Future and option if buying 1 lot at a time.
From discount broker side tradeplus has 30 and 3 paisa fro equity and F&O advertised for NRI client which would work out cheaper for above scenario I defined. Don’t get me wrong I love Zerodha and as you guys might see trade very regularly and have a decent portfolio as well but as my status is changing from resident to NRI Zerodha is loosing appeal to me as a one stop destination for trading in India. Appreciate any response or anything can be done on NRI brokerages.
Arun
The bandwidth required to support a NRI client is extremely high. Your funds sit in your PIS bank account, everytime you buy stocks we have to send the contract note to your bank to get the money released. Added to this general other operational issues. Don’t think we can do anything on the rates bit. Also for trading F&O for NRI, you need a custodian account.
Appreciate the response.
Can I have two trading account with different broker one for delivery and other for derivatives?
I understand I can only open one DEMAT account.
Arun
No. You can have multiple demat accounts bit only one trading account.
Hi Venu – What I understood from the blog is you need to have two separate trading account and client code one for equity and one for F&O as the income from F&O is counted as business income and can only done through NRO account. Whereas the cash/equity delivery account can be mapped to NRE or NRO. Is my understanding of the process wrong?
God Day ,
Iam holding NRE account, I want to know that can i do forex trading from India With my NRE Account. or is it also illegal.
Hi, Isnt it time that you guys tie up with other (other than hdfc and axis) banks for PIS accounts? For NRIs its too much to deal with to open new PIS accounts. Guess should be easier with so much going on in software developments. I have an IDBI PIS for your information and would like you to expedite if possible.
Regards
We’re in touch with a couple of Banks to tie up to provide NRI services. However IDBI isn’t on our list yet. Request you to get your account opened with Axis/HDFC for now to be able to trade at Zerodha.
I am NRI, and have NRE SBI saving account and also has (non-NRE) HDFC saving account.
if i open a demat/trading account with Zerodha, am i able to link my non-nre HDFC saving account to demat/trading a/c.
and I will be using HDFC a/c for trading/investment?
or Should I convert by HDFC to NRE account, since I am NRE.
Regards,
Yusef
You can’t map non NRE account.By mapping your NRE account, you can only trade in the Equity segment whereas through an NRO account, you could trade in both Equity & Derivative segment.
I am already trading through ICICI Direct 3-in-1 NRE / NRO Accounts. Is it possible to transfer my account from ICICI Direct to Zerodha. Is it going to be a complicated matter. The reason for transfer is mainly high brokerage charged by ICICI Direct.
Transferring is straight forward. We still don’t have tie up with ICICI though. You will need to have a NRE account with Axis or HDFC
Dear Nithin,
This is Alam from Saudi Arabia. I try to open demat account to zerodha from 6 month its self . I send the email to zerodha couple of time after they response. you have some criteria to open demat account then I open NRI / NRO / PIS account to HDFC bank. I completed my 1st criteria to open demat account to zerodha. after they told me you have send the documents to me with notary with Any government office like that. this criteria I cannot completed because in Saudi Arabia some restriction. then what i have to do. i am waiting for opening a demat account from 6 month in zerodha. please give me suggestion. I am waiting for your reply.
Dear Nithin
Thanks. I understand that for NRE Account it’s not that easy. Nevertheless can you please guide me on the steps for transferring. I can open an account with HDFC.
Transferring shares from one demat to another is really simple. Similar to how you get a cheque book when u open a bank account, you get a DIS slip book for a demat account (which you must have received from ICICI). On that DIS slip, mention the new Zerodha demat account number and all the shares you intend to transfer and submit it to ICICI. They will transfer it within 1 day.
Hi,
Please give a detailed response on these queries:
1.) My existing demat account is with ILFS that was opened via zerodha. Once I change my HDFC bank account linked to zerodha/ILFS to NRO, what will happen to this demat account and the shares that I have in them?
2.) What is the process of closing my existing demat account and opening a new NRI demat account?
3.) How do I transfer my shares from the ILFS demat account to the new NRI demat account?
Would also like to comment on zerodha support. I tried calling to all the numbers provided in your website and even after waiting for more than half an hour I was not able to speak to anyone. The support ticket that I had opened with the same query is also pending since the last couple of days. Please provide better support than this.
1) If your residential status has changed, you’ll have to close your existing account and open a new account. You can transfer shares from your old demat to your new demat account.
2) Both trading & demat account will have to closed. You’ll have to open a new trading & demat account. Would help if you can give us your contact details so we could get one of our Sales managers to give you a call and help you open the account. You can leave your details here: https://zerodha.com/open-account
3) When you opened an account at ILFS, you would have received a DIS booklet (Delivery Instruction Slip). A DIS booklet is like a check book for transferring stocks from one demat account to another. Fill in the DIS and submit it to ILFS, mention your new demat account details in the DIS and the stocks will be transferred.
Thanks Venu,
What is the process for closing my existing account with Zerodha? I have also mailed the same question to support.zerodha.com but haven’t got a clear reply.
Regards
It’s fairly simple – Just make sure you’ve withdrawn all the money in the trading account and have transferred all shares to another demat account.
To close your Zerodha trading account, we’ll just need a signed request from you. There’s no format as such, you can give us any feedback if you wish to. To close your ILFS demat account, please sign and send us this form: Form If there is any AMC due, it has to be paid before account closure.
Hi Venu,
Thanks for that. Very helpful. Can I send the signed soft-copies of these documents via e-mail?
Also, I request you to take a look at ticket 319292 opened at support.zerodha.com. I am not at all happy with the responses I am getting there. Posting here is much better than talking to support it seems. I have been really happy with Zerodha but because of this support issue I will think twice before opening my NRI account with Zerodha.
The ticket was closed because there was a response given here. Sorry about the confusion.
Also, Both Zerodha & ILFS will need hard copies.
I have requested citi(where I have NRI account), looks like they dont give PIS for people who live abroad
Here is the question : Can I get PIS (Portfolio Investment Scheme) permission letter? c
Status of your Query
Dear Ms. XXXXXX, We refer to your query dated April 28, 2016 pertaining to your Rupee Checking account ending XXXX. We wish to inform that our officer had tried to contact you on the number maintained in your account however was unable to establish contact. We wish to inform that we do not offer Portfolio Investment Scheme (PIS) accounts for customers residing in US (United States). We regret any inconvenience caused in this regard. Hence we request you to elaborate on your query for us to check and assist you further. For any further clarification, please write to us. We will be glad to assist you. Sincerely, Officer – Customer Care P.S: In case of any further queries, you may use the ?Compose mail? option to write in to us. Alternatively, you can contact our 24×7 CitiPhone helpline. For CitiPhone helpline contact details, please visit https://www.online.citibank.co.in/citi-nri/customer-service/toll-free-numbers.htm
Ah.. Guess you can try opening an account with other Indian banks.
is there any preferred bank that works zerodha?
We prefer getting PIS accounts opened through Axis Bank. The support is good and the charges are reasonable.
I have read somewhere on the Internet that Zerodha brokerage is 0.1% or Rs. 200 whichever is lower for NRIs. Is that the case because in this article nothing was mentioned about 0.1% brokerage?
Does the following combination work with Zerodha?
NRE saving and PIS account – Axis Bank
Demat account – Karvy
Trading account – Zerodha (buy/sell)
Current status: Indian citizen, residing in USA.
Please advise.
PIS with Axis will work, but you will need to open a new demat with us.
When you say “demat with us” are you referring to ILFS demat account?.
You can now open demat with us directly (no more need of an ILFS demat)
This might be a dumb question; but will ask it anyways.
I’ve traditionally accustomed to open a demat account with Kotak, HDFC, SBI… reputed institutions. Not sure on the safety and how demat account is protected with Zerodha?. Please help me with my query.
I personally don’t have great knowledge on how demat account and shares held in it are protected from any fraudulent activity. please educate.
Santosh, stocks sit in a demat account with depositories (NSDL/CDSL), which is essentially very similar to a locker in a bank. When they are in the depository, there is no broker risk you take. How safe is Zerodha, I had answered it sometime back. Click here.
Thanks for your response.
I have an additional question, Is possible to meet below requirement by local Notary rather than Indian Embassy ?. Will be hard to travel to another state to get it notarized. Currently residing in USA.
Note: Copy of PAN card, Passport, and Foreign address proof to be notarized by Indian Embassy
Yes, a public notary should be fine. The attesting authority should affix a “verified with original” stamp, name, designation, signature and date on the said documents.
Thanks for your response.
I’m in process of opening HDFC NRE and PIS accounts. Can I also start online application for demat and trading with Zerodha once I’m able to collect all the documentation I can complete the application.
Please guide on where I can start the online application for NRI.
Can you please send me account opening forms?
You can download the appropriate forms by clicking on this link: https://zerodha.com/downloads
Do get in touch with your Sales manager if you need any info.
Yes, you can. It’d be best if you can get in touch with your Sales manager for hassle free account opening. The Sales manager will ensure all the forms and documents are in place.
How can I get hold of sales manager? Please guide for account opening.
Can you share your contact details on [email protected], maybe your skype or gtalk id. Someone will get back.
Can you please help me with answer for below question.
Is it possible to just use trading account (buy/sell) with Zerodha and Demat account with either HDFC or Axis bank for NRI account?.
No.
What about just buying through Zerodha with demat account with HDFC/Axis banks?
Selling possibly through HDFC/Axis trading account.
You can have only one broking account linked to your NRE/NRO PIS account.
Thanks for your response.
To clarify further, I assume there is not even a possibility to have 2 NRE demat accounts and move/transfer shares between them?.
For example, having NRE demat account with Zerodha and Axis and moving among them.
I am a US passport holder that already has a demat account holding equity shares in a company in India I work for. How can I sell part of my holdings. My demat is with NSDL. Thanks
The demat you have with NSDL would be with an INdian brokerage firm. Best you speak to them, I am guessing they would have opened a trading account for you as well to sell these shares.
At the time go opening of the demat )with Karvy) I did not open a brokerage account. Can I open an account with zerodha and use the existing demat?
Yes you can. But the issue will be that you will not be able to sell stocks through us, u will have to use Karvy. Best to open both trading and demat with us.
Perfect, Il will do that then. Could you please send me by email the requisite forms to be filled ?
Having it sent.
Actually I have one normal trading account with sharekhan right now .but because of huge brokerage I am intending to open an account with zerodha.
But the problem is now I am NRI holding investor visa. I own business in dubai.
Can I open an normal trading account with zerodha. I am enquiring this because I will be taking money that’s already in India for investing.Not intended to transfer from here.
So please suggest me
If I am taking money already Indian account. Do I have to start NRI trading account
The onus of declaring your residential status vests entirely on you. If you are an NRI, it’s best to open an NRI account.
Can we place stop loss order through NRI trading account
If I place a sell order can I place a new buy order after the execution of sale order or do I have to wait for one day
If you buy & sell the same day, it’ll be considered as an Intraday trade and NRI’s aren’t supposed to do Intraday trades.
What would be the problem in future if I trade with normal account by not declaring as NRI.
Will there be any serious issues later on
There are lots of complications in NRI account other than normal account. It’s not as easy as normal that’s the reason
Can we open and operate normal trading account in our parents name as they are resident individual and transfer money from here as a gift.
And later on can we change that account to our name when we get back india.
Yep possible, many do the same.
Can we transfer cash held in our savings account to NRO account. What are the procedures to transfer that.
Please give me answer for all the above questions including this
Please check with your bank on how to transfer funds from savings to NRO.
It is best to open a NRI trading account. You will have issues when having to filing your income tax returns.
Dear Venu/Nithin,
I am an NRI with an Indian Passport and US permanent resident visa. I am being asked to furnish Indian proof of address by Pawan/Akshay at Zerodha. I can provide notarized overseas proof of address, but is Indian proof of address a necessity, especially since I don’t have a residence in India? The list of required documents mentioned in the post above, does not mention Indian proof of address as a requirement for opening an NRI demat/trading account at Zerodha. Can you confirm that NRIs (holding an Indian Passport with US visa) don’t need to provide Indian proof of address and that notarized overseas proof of address will suffice?
Thanks!
I understand that your NRI customers cannot subscribe to MFs and IPOs through Zerodha. Why is this being denied now and how can NRIs apply these as of now.
IPO’s is still not possible at Zerodha, but MF’s should be up soon for NRI’s.
Hello:
I have a few questions.
1. How can I apply for a demat account from Canada online?
2. I have NRE/NRO accounts with HDFC. How can I get the PIS letter from them? Will you assist with this?
Thank you,
Sikander
1. Current regulations in India don’t allow for online account opening. We could email you copies of forms, you’ll have to sign them and send the forms with all required documents.
2. We could assist you with this, however we’d like to inform you that we’ve started offering PIS services from YES Bank and have found their service & rates to be much better and lower than what’s being offered by HDFC.
I have 3 in one NRE account at HDFC. Can I open account at Zerodha?
Yes, you can get in touch with Akshay from our team who can help you get your account opened at Zerodha.
Hi,
I am an NRI based in Dubai and have been trading with HDFC bank ( I have the PIS, trading and demat account all with them) Can you please answer my following queries if I want to shift to Zerodha?
1. If I want to trade with Zerodha-can I use the same PIS account?
2. can I use the same HDFC demat account or will need to open a new Demat account with you?
3. If I have to open a new Demat trading account with you for trading can I keep using the existing demat trading /demat account as it is or I need to close it and shift the demat and trading account with Zerodha. In case I need to close and shift everything with Zerodha whats the procedure and workflow, time involved as I have quite a big substantial holding with HDFC ? also advice me of the charges to do so.
4. If I keep the PIS account with HDFC bank and credit/debit money to and from the zerodha account whats the cost involved- is it just the IMPS/NEFT charges or bank charges any additional to that. If you can find that from your HDFC contact that will help us evaluate the total charges.
5. As you are saying your tie up with Axis is better and has less charges-Can I open a new PIS account with Axis bank and start trading with you? If I can not open a new PIS and stil want to go through Axis bank-Zerodha combinations how to go about it from my existing 3in1 HDFC bank and the holding i have there in.
5. I will be coming to India soon- if I plan to open the account with Zerodha after coming to India. do you have any representative office in Pune and do you still need embassy attested documents if I am opening an account in India?
If I have missed on anything please fill in. I just need to know and compare the best way to shift to Zerodha as my volumes are quite high and would like to see if I can seamlessly shift to zerodha from HDFC bank.
Thanks and Best Regards,
Peeyush
1. Yes, but we’ve found the rates & the service levels better with Axis Bank. If you wish to continue using your HDFC account, you could do so. from my team who could assist you with this. As I said earlier, you can’t have 2 different PIS accounts, so you’ll have to close and can only hold one. Holdings can be transferred as explained earlier.
2. No, you’ll have to open a new demat account with us along with a trading account.
3. You cannot hold 2 PIS accounts with 2 different brokers. While there’s no problem with you keeping your trading & demat account with HDFC open, it’s redundant to do so because you cannot execute any transactions after mapping your PIS account with Zerodha. It’s best to close it. Once your new demat is opened, you can initiate a ‘closure cum transfer’ whereby you can transfer all shares from your HDFC demat to your Zerodha demat. All ‘closure cum transfers’ are done free of cost.
4. No, as an NRI you cannot/should not transfer funds to your broker. Funds will be kept in your PIS account and the broker will report contract notes to the Bank and receive/pay against purchase/sale transactions you make.
5. Yes, we could assist you with opening an account with Axis. You could write to Akshay Atur
5. Yes,you can find our address on Pune here: https://zerodha.com/contact-us. You can get in touch with an office closest to you. If you’re in India at the time of account opening, there’s no need to get your documents attested.
In short you’ll have to:
*Decide if you wish to stick with HDFC or move to Axis.
*If you wish to stick with HDFC, you’ll have to get the PIS account mapped to your Zerodha Trading Account. The PIS account will have to be an offline PIS. Your RM at HDFC should be able to help you with this.
*Transfer holdings from HDFC to Zerodha. Initiate a closure cum transfer of your demat to avoid paying charges for transfer.
*Start trading at Zerodha!
Do get in touch if you have any other queries.
Hi Venu,
Thanks for your time for answering my queries in detail. I have following queries again based on your answers
1. Please ask Aksahay to write to me and I can explore
1. when you say you have better experience with Axis bank by that you mean seamless transactions between the NRE/NRO transfers from Axis PIS to Zerodha demat and trading account. if I keep money in Axis PIS how quick is the transfer from Axis PIS to your trading account? is it instant like in my HDFC 3 in 1?
2. When you say Axis has better charges can you please give me the charges comparison to make a decision between HDFC and Axis as I would love to reduce my charges in that case.
3. If I go with Axis how much time it takes to open a new PIS and will I need to close the HDFC PIS before applying the Axis PIS? I just wanted to know the time frame as I will not be able to trade if this takes a lot of time.
4. how much time will it take for closure cum transfer of my holdings from HDFC to Zerodha Demat?
Please ask Akshay to write to me so I can explore this process and if the whole time frame is not going to take a long time then I might be interested in this.
Best Wishes,
Peeyush
1. In case of a purchase transaction, funds get debited on T+1 and you receive credit on T+2/T+3 in case of a sale transaction. The systems used to accept & process contract notes are better with Axis as compared to HDFC.
2. You could check with your RM as to how much HDFC would charge. Axis charges Rs.150/contract note and under a special scheme, if you maintain a balance of over 10lacs, the PIS charges would be Rs.75. We could put you through to the concerned people at Axis who could help you open the account
3. Wouldn’t be able to answer this question. We’ll put you in touch with someone at Axis who can be of help.
4. Again, this would depend on HDFC. Ideally transfer shouldn’t take more than a couple of days, but again they may have some internal policies.
Hi Venu,
1. what is an offline PIS and what are the charges assiciated with this account ie the opening charges and annual maintenance charges
2. when you say Axis charges 150 per contract note- is it per scrip or all the scrips I buy during a day?
3. and if I maintain balance over 10 lacs- this shouldl be in PIS or demat account holding or NRE/NRO account? 75 Rs is per transaction?
4. as you had said that I cannot maintain 2 PIS account that means I can not open another PIS account before closing HDFC PIS. If I close HDFC PIS can I still keep the HDFC demat account till my new PIS is opened with Axis bank? and then transfer the holdings to Zerodha? bit confused here
1. The online PIS account with HDFC only allows you trade using HDFC securities as a broker. Offline A/c allows you to attach your PIS to other broker accounts and trade through them. Wouldn’t know charges for the Bank account, best to check with them.
2. Yes, Banks charge based on the contract note reported. Some charge based on the value of the contract note, some charge a flat rate. Axis charges Rs.150 per reported contract – it’s for all the scrips bought one day.
3. Balance to be there in your Bank account. It could either be in PIS or in NRE/NRO account. Yes, 75 Rs. per day’s contract note.
4. Yes, you can keep your demat account open. Open a new PIS account at Yes Bank, link it to your Zerodha trading account and then you can transfer all holdings from your HDFC demat to your Zerodha demat account.
I am from India and now living in UAE. I have nre account with yes bank. I want to open a demat account with zerodha. Please advice to whom shall I contact.
getting our team to email you. Btw, everything you need to know to open an account is on this post.
I am in US and I want to invest in commodity in India. As far as I understood, I am not allowed to trade in commodity in India being NRI, right?
How about I transfer my investment to mine and my dad’s Joint account and then he transfers to his Demat account .. So basically in bank its joint account but Demat account is solely my dad’s.. Does this work?
To trade in Commodities, you’ll need to open a Trading account only. There’s no need of a Demat account.
If your father is a resident Indian, you can open an account in his name and transfer money from his bank account. You could then use the account and trade if your dad is willing to let you.
The brokerage is for per order and not per contract right? I mean even if I buy 10 contracts of NIFTY, I still pay ₹400 and not ₹4000 – right? and upon that we pay ₹150 for contract note, so that total is ₹550 per order?
Yes, it’s per order. If you buy 10 lots in one order, you pay only 200. The rates for PIS reporting varies for each bank.
As NRi, I opened 3in1 ac with Yes Bank. I hold sterilite technologies,stock, purchased in May 2016, which is giving me split shares on demerger in Aug 2016. Book recording / closure was on 16th June.
I have opened as Nri trading and Demat ac with zerodha. Now i have given Demat and trading closure instructions to Yes bank, keeping PIS ac.
Please advise , whether sterilite tech will only transfer split shares in Aug to Zerodha Demat directly, as it has my Yes bank’s Demat number in their records ?
No, the bonus shares will not get credited to your Zerodha demat account. Bonus shares will be credited to the same account that is in the R&T’s (Registrar & Transfer) records as on record date. In this case, it’s your Yes bank demat that they would have recorded. If the account is already closed, you’ll have to make a representation to the R&T and get the shares credited to your new account.
In case you haven’t initiated closure, best to receive credit of such shares and then close.
Hi Nitin,
I have been trading in equity , F&O for more than a year with Zerodha.I
Recently I moved to Australia.I am planning to apply for Permanent residency(PR) in Australia.Can I continue to trade using my Indian Zerodha account? or After getting PR, I need to apply for NRI account?
Moreover,NRIs can do intraday in F&O (not in equity) ?
Hello, I already have NRI trading account with other broker and PIS account with Yes Bank. Can I close the other broker DEMAT account and use the same PIS account to link to Zerodha? Please guide. I dont want to go through trouble of opening the PIS account again. I have active NRE, NRO and PIS account with Yes Bank
Yes, you can use your existing PIS account at Yes Bank and trade with Zerodha. Please write to Akshay at [email protected] who will help you with this.
what is the brokerage charges for NRI equity base trading not F & O only delivery based equity?
Rs 200 per executed order as mentioned on the post above.
can you tell exact time of https://kite.zerodha.com/ because whenever i am trying to put order equity limit (CNC) in off market hours like Saturday after 01PM to sunday 3PM any time message is coming “Adapter is down” so can you tell exact time to put order in kite website or mobile app?
Unless we are running some maintenance, you should be able to place AMO the rest of the time. Check this post. Having it checked why not.
Thanks nithin now it is working and is there any update on VTC (Valid till cancel) facility in order ?
NO VTC as of now, on our list.
As per latest RBI regulation (Notification No.FEMA.361/2016-RB) dated 15th Feb 2016 “A Non-resident Indian (NRI), including a company, a trust and a partnership firm incorporated outside India and owned and controlled by non-resident Indians, may acquire and hold, on non-repatriation basis, equity shares, convertible preference shares, convertible debenture, warrants or units, which will be deemed to be domestic investment at par with the investment made by residents.
If NRI is investing on non repatriation basis then PIS account is not required. The NRO savings account should be sufficient in this case. Please clarify if you have started offering the above scheme and whether local demat account can be opened ?
Thanks
Domnic
Hi,
I am a newbie to stocks and MFs.
I am an NRI living in Qatar. I hold NRE and NRO in HDFC and NRE in Yes bank.
Can you clarify the following:
1. If I open a Demat + trading account with you and link it to one of the above accounts. – Is it mandatory that i have to link it to NRO only or can we link it to NRE a/c ?
2. How long is the actual process ( from submitting the forms to actually start buying stocks online through the account)?
3. My intention is to buy equity (stocks) + mutual funds and retain it for long term ( say 5 years). After 5 years, if i wish to sell a portion in stocks – Will i get the money credited to my account after TDS or just because i have holded it for more than one year, i will get the full amount credited as on the date of sale?
Thanks in advance!
We recommend trading through YES Bank since their costs are lower & services are better.You’ll have to open a NRE PIS & NRO PIS account at YES Bank. You can write to Adam from YES bank who’ll assist you with the account opening: [email protected]
1. It’s not mandatory to link it to NRO; We can also link it to NRE. – PIS account will be linked to the Trading account.
2. The whole process from when we receive your forms to the account being opened will take about 4-5 days subject to the documents being correct.
3. Yes, since LTCG is exempt from any tax, you’ll receive full proceeds on T+2 with no TDS deduction.
Great article.
these questions and answers in discussion have much more interesting information.
It would be great if these discussions are made available as FAQ’s or like version 2 of this article.
sir, I am going to abroad form last 1and half yrs i am using zerodha pi. Can i use zerodha pi in abroad
Yes
Which all banks Zerodha support?
Does it work with federal bank
Yes it works with Fed bank on payment gateway. You can use any bank and do IMPS/NEFT/RTGS.
Hi…
What is the correct procedure for equity delivery transaction for NRI account?
I have HDFC PIS + Zerodha Trading & Demat
This is what I did….
1. Transfer money from HDFC NRE to HDFC NRE PIS Account
2. From Zerodha Funds menu, I transferred the money from NRE PIS account to Zerodha funds
Can I now buy the stocks using the balance that is shown under funds? Is this the right procedure?
Hi Jd,
As an NRI investor, you can’t transfer funds online. Funds are settled by your bank. If you’ve transferred funds inadvertently, it’ll be reversed to your account. Your bank will share information about the balance in your PIS account. The trading terminal will be updated with such funds upon confirmation from the bank.
Hi Nithin/Venu
being a NRI investor, Can i sell my sell positions/holdings on the very next day of buy(T+1 day)?
I saw somewhere ATST/BTST, but is it available for NRI’s?
No, NRI’s will have to wait to take delivery of the stock.
Clear!
Thank you Nithin.
Its easier to open an account in US. and there is zero % tax. Here Traders are tax 15% on gains and on loss will get no nothing in return. Thanks but NO THANKS! Will invest my money elsewhere.
I am a NRI currently having NRE account with IndusInd and I also have my PIS account with them – I am currently living in qatar and have got share trading setup with DBFS (Doha Bank Financial Services – India) – but they charge too much for brokerage. I currently have many 10 shares in my portfolio worth 1.5 crore. I want to switch to ZD – could you please tell me what I should do?
Subodh, to begin with you will need a PIS with HDFC/Axis/Yes, we are supporting only these 3 for now. Once you have that, documentation etc is mentioned on this post.
Nithin,
Thank you so much for your reply.
1) do I need to close my PIS with indusind?
2) do I need to close my brokerage account with DBFS?
3) what happens to the stock I purchased through DBFS via my indusind PIS?
No need to close the other account, you can move the stock from DBFS to our demat once it is opened.
Nithin,
I read from some websites that NRIs are not allowed to hold multiple PIS accounts or demat accounts. appreciate if you can double check and provide a road map so that I can go further and setup bank accounts to start trading with zerodha
Yes. Also if you can send an email to [email protected], he will tell you about how NRO accounts (non-repatriable) can be mapped to trading and a normal account can be opened by NRI.
upstocks support indusind and has the lowest brokerage for NRIs – only 100 rs.
I am in the same situation as Subodh – although I am dealing with another broker. I wish you guys had clearance arrangements with IndusInd – closed all my other bank accounts and using IndusInd only as the customer service and online banking is hassle free.
i’m currently working in bahrain , how can I open NRI trading A/C with zerodha, pls guide me.
Bharath, as per the latest RBI release, if you have a NRO (non-repatriable) bank account, you can map that to the trading account and it will be like a normal resident account. It will be quite simple to open. IF you don’t have, you need to follow the steps in the above post.
i have NRO account with SBI, Canara and Indusind – do you support any of these banks?
As per the new RBI circular, if you map your NRO (non-repatriable) account to the trading account, you can open a normal resident trading account. If you send an email to [email protected], he will help you out.
Reference to your below news update on on RBI circular.
” During account opening send a normal resident trading and demat account form along with your NRO savings account cancelled cheque leaf as a proof. All brokerage charges would be as applicable to resident individuals (Zero brokerage for investing vs Rs 200 per executed order charged for NRI clients coming through the PIS route). Equity – delivery and intraday trades will be allowed. Trading in F&O (equity, currency, commodity) will not be allowed. This also means that you can map any NRO bank account unlike being limited to just our partner banks for PIS (Axis, HDFC,YES). ”
based on the above if not PIS account , nri is allowed intraday trade , however for trading in F&O should i have another account, please clarify
Yeah, for trading F&O you will need to come through the custodial participant route.
I have resident demat and trading account in Zerodha through which I used to trade Equity and F&O in previous financial years. I recently moved to US for education purpose. Can I continue using the existing trading account to trade in F&O? Or will going abroad for education change my status to NRI and require me to come through custodial route?
It depends on you. But if you change your resident status to NRI at your bank/us, yes you will need to come through custodial route.
Great Info thanks.
Just a quick two Q’s –
1. Opening an account with zerodha & NRE account (from bank suggested by you) is easier if
1. Opening from overseas or
2. When I am in India (Chennai)
I will be coming to Chennai in Dec 16, if the second option is easier I will do it when I am there.
2. What original documents I need from overseas (apart from passport, overseas licence (for address purpose)
Hi Shankar,
1. Opening the Trading & demat account with NRE account (PIS accounts with either Axis, Yes or HDFC)
It would be easier:
1. If you plan to send the documents from overseas, you’d have to get the PAN Card, Passport, Overseas address proof and POA (Power of Attorney) attested.
2. If you plan to apply when you’re in India, We can have someone verify the documents (PAN, Passport originals) and collect the documents from Chennai.
2. Attested documents need to sent along with the forms. As detailed above.
Am already holding Demat / NRE pins/no pins account with icicidirect. I wish to switch over to zerodha for NRO type account so that can trade in both equity/F&O. My question,s
1.should I need to close the existing icicidirect Demat/NRE pins/no pins ?
2.can I move existing holdings from icicidirect Demat to zerodha
3.which bank do I need to open NRO account or can I use my existing NRO account with SBI
4.what are formalities for the account opening. Will it be simpler this can be done when am in India (Bangalore) sometime in Oct/Nov
5.same way what is the procedure for a resident (my wife) whose Demat/trading accounts are with HDFCSEC. What’s the procedure for switching over trading to zerodha? We need to close the Demat account first fromHDFCSEC ?
Appreciate your detailed call artificiality to my email id.
Thanks
Ravi
Hi Ravi,
Even with the NRO account, as an NRI if you wish to trade in F&O you will have to get a Custodial Participant (CP) Code.
1. You can continue holding the NRE PINS + Demat account with ICICI direct.
2. No, you can have an NRE and NRO demat accounts.
3. You can use your existing NRO account with SBI to link it with Trading & demat account.
4. You can find the forms & other documents detailed above. Only thing that would change if you’re submitting the documents in Bangalore is that you’d need not have to get the attestations done.
5. You can give a closure cum transfer to HDFCSEC and open the Zerodha Trading & demat account for your wife.
Akshay
thanks for your replies.
1)even though if am I open NRO demat/trading with Zerodha when am in Blr, do I need to get some doc’s attested abroad? is not local attestations will do? If so what doc’s (can u send me details to my email account?)
2) I wish to close NRE demat/trading with existing broker. if so is it possible to transfer the holding to NRO demat?
Regards
Ravi
Hi Ravi,
1) No, you wouldn’t need any attestations if you submit the forms at our office. Since, we will verify with the originals. Will have it sent to your email. Btw, everything you need to know to open an account is on this post.
2) Yes, you will be able to close your existing NRE trading & demat account and transfer those holdings to your NRO account.
Dear Zerodha,
On top of what Mr. Ravi asked, being an NRI, Can I keep my PIS based Demat & Trading account with my existing broker & open an additional demat & Trading account through Zerodha?
In summary, is it permissible to hold two trading accounts, one PIS based & another ordinary(linked to NRO account)
Regards
Mathew
Hi Mathew,
You can have an NRE (PIS) linked Trading &Demat with existing broker and open a Demat account linked to NRO account through Zerodha.
Yes, it is permissible.
Thanks Akshay for clarifying.
Now , what documents should I submit to open a Demat & Trading Account with Zerodha?
Do i need to get those documents attested?
Please note that I am already KYC compliant from NDML KRA.
Mathew
Mathew, if you are already KRA compliant, just self attested copies of your documents (PAN, address proof) will do.
Thanks Zerodha.
Should I send self attested copies in original through post, or scanned copies will be sufficient?
Through post will be best.
Thanks Nithin. I will do that.
Hi
I am curious whether the present brokerage charge for delivery-based trading for demat accounts connected with NRE account is still INR 200. The reason I am asking is because competing brokerages have pricing of 0.1% or INR 200 (whichever is lower). I just want to make sure what the pricing is before opening an account.
Yes, we do give you the benefit of paying either 0.1% or Rs.200 whichever is lower. Btw, we are now allowing you to map NRO savings account and open a normal resident trading/demat account. In which case the brokerage is 0 for equity delivery.
Hi Nithin
This is great news for both the charges of delivery based trading for NRE account as well as the ability of mapping an NRE savings account.
Right now I stay at Atlanta USA. Is it possible for me to open a trading and demat account from here or will I have to visit India to do that? I am in the process of opening an NRE account with HDFC right now. Let me know so that I can proceed accordingly.
You can open from there itself, you just have to ensure all the proofs you courier to us while opening an account is notarized by the embassy there.
Hi Nithin
You suggested me in our last conversation that I can map an NRO savings account and go through non-PIS route and operate zero fee based trading account like a resident account. I recently visited India and submitted all the necessary documents and received an email mentioning invalid documents asking for PIS letter. Can you please look into this and advise me how to proceed?
Ah we had some roadblock on that, all the work that a bank does in case of PIS (deducting tds, filing it, and etc) is the onus of the broker. At the rates we work, there is no bandwidth to support such manual work. We have stopped supporting this route for now.
Hi,
I am an NRI student based in Perth, Australia. My dad is a resident.
My dad will soon get an resident demat and trading account (equity delivery for now) with you guys for himself.
Is it possible for me to use his Login, Password and F2A Credentials and trade in equities from Perth (Kite Web) ?
Does Kite Web require an Indian mobile number ?
I believe this way is very cost-effective rather than me to open an NRE PIS account and pay higher brokerage and PIS reporting charges.
Thanks.
Yes, you can trade on Kite from anywhere in the world. Kite web doesn’t ask for any mobile number, your contact number on the account opening form, you can mention your dad number itself.
Hi,
I have resident Trading and Demat Accounts with Kotak and Edelweiss(I have long term tax saving infrastructure corporate bonds in both of them), now I am NRI and have my NRO account with HDFC.
I am interested in Zerodha before opening account I need clarification on below:
1)My existing stock and bond holdings which I acquired while I was resident – can they be moved to new Zerodha Demat?(I am interested in NRO non PIS , non repatriable only),If yes what is the procedure to do so?
I am visiting India next month,Is it possible to get the documents verified in Jaipur Rajasthan?
2)If answer to first question is No then what would you advise for me in this case?I do not want to pay for multiple Demat accounts,The way I am thinking is just have one Trading + Demat Account(Which could be Zerodha) which will have my existing purchases along with new purchases if any(mostly equity delivery)
3) Also I also have few MF holdings with Kotak -can I move those as well to Zerodha?
Hi Kapil,
1) Yes, they can be moved to a new Zerodha demat account; We’ll be mapping your NRO account (Non-PIS).
You’ll have to close the existing demat accounts, since you cannot hold a resident demat account once your status changes to NRI.
2) Yes, It’s possible. We can have someone come and collect the documents or you’d be able to drop them at our Jaipur office.
3) You’ll be able to transfer those MF’s if they’ve been listed on our MF website:
https://mf.zerodha.com/
For more help, email [email protected].
Dear Mr.Kamath,
I am an NRO planning to start a Demat account could u pls guide me about opening an account , is there a NRI team who would assist in application.
Many thanks
Anand
Anandan, everything you need to know is on this post above. If you have anything else, you can reach out to https://zerodha.com/resources
Sir, referring to the important update given in the blog related to FEMA amendment by RBI,
can you explain, can I have 2 trading accounts,
one NRI-PIS based with another borker
and seconnd NRO (non PIS ) with zerodha.
or please tell on this : I have already NRO PIS based with another broker and CP code by ILFS. can I use the same CP for zerodha account or can i have one more account with same NRO account or from another NRO acccount from another bank.
Please reply, so can move on further
Hi Shajan,
Yes. You can
One NRE demat (PIS) with one broker and another NRO demat (Non-PIS) through Zerodha.
You’d be able to use the same CP code from IL&FS to trade F&O;
You would have to give a revocation letter to your existing broker and also an NOC letter from your bank.
Hello,
I have my zerodha account which I opened when I was in Chennai. Currently I am in USA. Traveled USA on Mar 2016.
Quations
1) Still shall I involve buying and selling of stocks using the same demat account.
2) Is it legal investing in NSE when I am physically located in USA?
Thanks in advance
1. yes you can.
2. Yes
If you change your status as NRI, you can send your NRE (non-repatriable) bank account details for mapping. Once you change status to this, you won’t be able to trade F&O.
Thanks for the clarifications.
Is it mandatory to change the status as NRI before I invest in NSE/BSE stock. Currently I have linked my normal HDFC saving account with zerodha. Looking forward for your advise..
Hmm.. Its a tricky answer, many people invest without changing the status, but it is best if you do so.
Dear Kamath,
I am in the process of filling the Application for NRO NON PIS ACCOUNT ,I have 2 queries
1) I dont have indian number will i receive meesage from zero to my international number if answer is no I am using a number for my dad trading account can i use the same number for nro non pis account.
2) In page 12 of application the type of account should I select Individual or NRI Non repatriable as there is no option for NRO NON PIS ACCOUNT
1. You can use your dad’s number.
2. Yes, you need to choose NRI Non repatriable.
hi,i am working in kuwait but i usually visit india every 6mnth.i have NRE account if i want to open dmat acount for
equity trading can i link my NRE account as a normal account with zerodha .i am a long term invester.
Yes, you can (as long as this is non-repatriable NRE account).
hi,sir
what does it means non-repatriable NREaccount
I meant, Non repatriable NRO accounts.
First of all, I must appreciate the help you and your team are extending to all ignorant souls like me. Thank you very much!
I am currently staying in India and will shift to foreign land in 2 months’ time. So, technically I will not be an NRI till March of 2017. I have ICICI bank Savings account and a linked ICICIdirect trading account. I also have a HDFC savings account which is my salary account as well. I want to open a Trading account with Zerodha which will be linked with HDFC savings bank account.
My queries are –
1. Can I open Zerodha account linked with my HDFC savings account now and later (probably before April 2017) change the status of HDFC savings account to NRO account? Will it work properly or will I again have to open a new demat and trading account when I change status to NRO?
2. Can I maintain my ICICIdirect demat account as well by converting my ICICI savings account to NRO account?
3. My ICICI direct demat account has exposure to Equities, MFs and Insurance. I just want to keep it live so that I can exit the equities at appropriate times. So, can an NRI maintain multiple Demat accounts?
1. Yes you can change the status later and not have to open a new demat and trading.
2. You will have to find out from ICICI, not everyone is allowing NRO bank account to be mapped to normal trading account.
3. Yes, you can have multiple demats.
HI Nithin,
After going through all the comments and the post my understanding is,
1. If a person( When he was in India ) who already had zerodha Resident Trading and Demat account (Which was linked with resident Bank Account ) need not to open a new Demat and trading account if he wishes to choose trading in Non – repatriation basis. And he just needs to convert the resident Bank account to NRO and provide those details to zerodha would be fine. And he can continue with the existing Trading and Demat account. Is this totally correct.
2. If a person (After becoming NRI ) doing trading only on NON-Repatriation basis using NRO account (not PIS route) then he can execute both Intra day and Delivery trades. Is this correct?
3. The charges for trading only on NON reparation basis using NRO account (Even though NRI status) is 0 for delivery trades and for intra day trades flat 20. Is this correct ?
I got confused about first point in some comments you replied like existing Trading and Demat accounts needs to be closed and new accounts need to be created after becoming NRO. In another comments you replied like using existing Demat and trading account (which was opened when person was resident) with updated NRO bank details. Please clarify.
1. Yes
2. Only delivery trades.
3. 0 for delivery, intraday not allowed.
I guess there are comments from before the new RBI fema regulations and before. So the answers might differ.
Hi Nitin,
This is Phani and am really interested to open demat & trading account with Zerodha.
Here is what I understand:
1) Repatriable (Using NRE Savings) : I can open demat & trading account on repatriable using NRE savings & NRE-PIS account but I can’t do trading with this.
2) Non Repatriable (Using NRO Savings): I can open demat & trading account on non-repatriable using NRO savings account (where NRO-PIS is not required) as per recent guidelines from RBI.
3) Finally, as an NRI – I can open one demat & trading account on repatriable and another demat & trading account with non-repatriable i.e., in total I can open 2 demat & 2 trading accounts.
Please confirm whether my above understanding is correct or not?
Regards,
Phani.
Hi Phani,
1. You can trade on Repatriable basis through the PIS route. You can buy & sell stocks only on delivery basis.
2. Yes, you can trade on non repatriable basis through Non PIS route. All rules & brokerage that will apply in such case will be as applicable to a resident Indian.
3. Yes.
Hello,
Can you please elaborate this note in the Important update:
“There is good news for all NRI’s wanting to invest in the Indian stock markets. RBI has now amended FEMA regulations which now allow NRI’s to invest in Equity markets on non-repatriation basis just like resident individuals. Here’s the link to the RBI circular.
During account opening send a normal resident trading and demat account form along with your NRO savings account cancelled cheque leaf as a proof. All brokerage charges would be as applicable to resident individuals (Zero brokerage for investing vs Rs 200 per executed order charged for NRI clients coming through the PIS route). Equity – delivery and intraday trades will be allowed. ”
Does this mean that NRI’s can also trade without PIS route and with Zero brokerage just like resident traders and NRI can also do intraday trading,
Please clarify and confirm.
Thank you
Yes, as long as it’s being done on non-repatriable basis, you can trade/invest through Non PIS route by paying zero brokerage just like for resident accounts. Yes, Intraday trading allowed.
Thank you venu.
I have recently opened NRE account with hdfc and pis is also approved in August.
I have also got the documents notorized by Notary public.
Now please let me how can I change it to NRO account and what additional documents are required to open simple a/c for nri.
Thanks.
Hi
Thanks a lot for the informative post and also answering all the questions. It helps a lot !
I am trying to open a zerodha NRO trading account but the attestation process seems to be very painful and also expensive. The UK address proof cannot be attested by embassy unless it is attested by the SPO (UK).
The indian embassy will only attest documents originated in India (Passport, PAN card and i think POA)
I am thinking of following Two options:
Option 1:
1) I must be KYC compliant already because I have a resident trading account with Angel and some mutual fund investments done recently (via resident way).
2) I have a resident bank account to fund my trading.
3) I have all required proofs to be submitted for resident account opening (adhar card, pan and passport, last year ITR/bank statements(resident account))
4) Using all documents above, open a resident account online and continue trading. Change it to Non-resident account status when I visit india in a few months (mid-2017) avoiding the hassle of attestation.
Option 2:
1) Get Passport, POA and PAN card attested by Indian embassy in UK.
2) Get UK bank statement (address proof) attested by UK local bank manager (signed as “verified with original”)
3) Get SBI NRO bank statement (contains UK address) attested by Indian Embassy if they do it.
4) Submit all the above documents along with other necessary items and open Non Resident trading account.
5) If i go by option 2, are the documents above sufficient to be considered ? do i need all proofs to be attested by SPO(UK) and then counter attested by Indian Embassy or a simple attestation of UK proof by UK banker and indian proof by indian embassy is sufficient ?
Option 1 is a temporary bypass from the legal hassle, but quick and easy fix for me. If it is possible to meet in person after a few months and convert the account to Non Resident, I feel I should take this approach.
Option 2 on the other hand is a hassle to deal with and I have to liase with many different parties making it a slow process and prone to mistakes. nevertheless, I can take this approach if thats the only way, but would like to simplify it by eliminating SPO(UK) from attestation. Just get UK proof attested by UK banker and Indian proof attested by Indian embassy and submit.
Whichever option I choose, in the end after zerodha account options, I would like to transfer my portfolio from Angel broking to Zerodha. What are the costs involved and process? Is there any attestations required for this purpose again ?
Hi Phani,
Option 1: Changing your account status from Resident to Non resident isn’t allowed. You’ll have to close your existing account and open a new account. Your being KYC compliant would not be of help since it would have been uploaded with the residential status being Resident.
Option 2: The documents that need attestation are: PAN, POA, Foreign Address proof & Indian Address proof. Since you’ve said that your bank/embassy is willing to attest documents originating from India, you can get the PAN,POA and the Passport attested. You’ve also mentioned that your SBI NRO Account contains your UK address, so attestation by SBI officials will suffice.
About transfer of shares, the charges that will be applied will be by Angel. You’ll have to fill their DIS and submit it to them. Request you to get in touch with them for this.
Cheers for the quick reply venu !!
Thanks for clarifying my points. Option 1 is ruled out then.
In the meantime, I also found a local solicitor who can certify/attest the copies as “True as Original”. He said a simple certification like this is sufficient for this purpose. He can certify all my copies after looking at the originals only. The advantage here is I can get all my documents certified as true copies at one place.
I have checked with SBI again and they have back tracked. The branch in UK cannot attest a statement of an account that belongs to India. So if the certification by a lawyer/solicitor is sufficient i can go this way.
Yes, you can.
Hi Team,
As an NRI, am I able to buy mutual funds (direct, regular) on repatriable basis or non-repatriable basis using zerodha demat and trading account? Do you offer this facility to customers?
Regards,
Phani.
There are certain AMC’s which do not allow NRI investment. Apart from such AMC’s, you can invest in other MF’s. We offer only regular plans.
All brokerage firms are offering regular and direct plan mutual funds for NRIs as well as resident customers. I am really surprised when you said you are not offering direct plan mutual funds for NRIs.
1) Please let me know from when you are planning to start offering direct plan mutual funds for NRIs?
2) As an NRI, if I buy any mutual fund using zerodha demat and trading account on zerodha kite web software then will those mutual funds get credited into my demat account?
3) What are the charges from your side if I buy Regular plan – mutual fund?
4) What are the charges from your side if I buy Direct plan – mutual fund? (in future – as you are curently not offering this)?
Regards,
Phani.
You’ll have to approach the AMC directly in order to buy direct funds. What brokers offer will be Regular funds. There are no charges for buying mutual funds. Yes, MF’s get credited to your demat account upon purchase.
Thank you for your quick reply Venu.
If I directly purchase mutual funds from MF. How can that be credited into my demat account.
Regards,
Phani.
You’ll have to provide them with the demat account details. On allotment, the units get credited to your demat account.
As per document required to open nre/ nro demat and trading account need to have indian embassy or equivalent to stamp and verified passport, pan card and address proof.
Does this is necessary. Because to open nri account bank not asked for such thing
Yes, the attestation is required, since we don’t get to meet you to open the account.
Under New Scheme of NON PIS rout via NRO account, who is liable to deduct TDS?
Since its on non repatriation basis and theres no reporting of contract notes, the assessee himself has to pay taxes accordingly.
some one dont have any resident account but only NRO account , so this is possible to open trading account on non repatrition basis with just NRO account?
Yes, if the residential status is that of an NRI, then we can map a NRO savings account to the trading account.
f one open account with NRO status , can he close the existing NRE PIS and transfer the holdings to new account with NRO status( both dmat holder are same)
if one open account with NRO status , can he close the existing NRE PIS and transfer the holdings to new account with NRO status( both dmat holder are same)
Hi Nithin & Venu,
This is a lovely article and the features of Zerodha are impressive. Thank you for providing us with an option of such a wonderful platform.
I am planning to open a Demat account with Zerodha, but before that I would like to know something about connecting my NRE account with it. I read at many places that we can deposit income earned in India (I am assuming this includes dividends) to an NRO account only. So, with an NRE account linked to the Demat, how do we get dividends from the equities we own? Or, are NRIs not eligible for dividends?
Also, are capital gains termed as income and can they be deposited to an NRE account?
I am trying to understand if an NRE account is sufficient (as I am interested in investment in equities only) or do I need to open an NRO account.
Thank you!
Regards,
Saurav
I have PIS account linked to HDFC NRE account. Can I use the same PIS account for opening NRO Dmat?
Thanks!
For that NRO demat, you don’t need a PIS. Just map your NRO account with the trading account and trade like a normal resident (no F&O allowed though).
Thank you Nithin.
Can I like any bank account? or I need to link either of HDFC, ICICI or AXIS bank account.
Any bank account is okay if NRO. But if through PIS only HDFC, YES, and Axis.
Really appreciate if this page is updated. On the 2nd para its said, “This also means that you can map any NRO bank account unlike being limited to just our partner banks for PIS (Axis, HDFC,YES). ” where as when i call zerodha they say i still need account for these banks. Can you please rewrite this page with only valid information.
It is updated Kaushik. If you are mapping your NRO savings account to the trading account, you can open a normal trading account itself (without PIS), no need for it to be a NRI account. If you are opening an account through the PIS route, then yes still only Axis, HDFC, YES.
I heard that US NRIs cant invest in india mutual fund schemes. Does zerodha allows it?
No rule as such, NRI’s can invest into MF with Zerodha
Hi,
I have a query related to opening of a new demat account at your DP .
If a citizen of France but of Indian origin (OCI) who has returned to Indian in 2015 and is living and working here and is a resident Indian taxapayer. He has an Indian savings bank account and gets salary in Indian rupees.
If he wishes to open a demat account, should this be classified as an Indian Resident account as the BO is a resident tax payer in India ?
In KYC form, should it be mentioned “Other” in citizenship but “Resident Indian” as the residential status ?
Regards,
Rahul
The residential status would be determined as per the FEMA regulations and not as per the Income tax Act. If the person in question is a resident as per FEMA guidelines, then yes, it’s possible to open a Resident Trading & Demat account. There wouldn’t be a need to open the NRI account. In the KYC form you would have to mention as ‘Others’ — France and Residential Status — Resident Indian.
Yes you are right except that FEMA also derives the residential status from Income tax act.
I have filled in the application form manually after i recieved a zip file of all required documents from nri desk. Zerodha received my documents today and I received a mail confirming the same. However, if i login to the zerodha account opening page, it is again asking me to fill up all the basic details. I thought it should ask me to do the IPV if it is required. But looks like the process is not mapped or linked together?
How long does it take to open the account after the documents have been delivered to zerodha ?
Hi Phani,
Since, you have already sent us the forms and they are being processed, you’d not be required to fill in those details once again. You’ll get an email with the status.
The account opening takes 3-5 working days and you’d receive your login credentials once done.
if one open account with NRO status , can he close the existing NRE PIS and transfer the holdings to new account with NRO status( both dmat holder are same)
Hi Roopak,
One can open an NRO demat account, he can keep the NRE PIS account opened if he wishes or can close it. He’d also be able to transfer any holdings from that (NRE) account to NRO demat account. But, not be able to claim any repatriability benefit when transferred from NRE to NRO demat and sell the holdings.
Hope this clarifies.
I transferred the money for account opening and received partly filled-in form from you.
I have few queries related to filling the form.
1) Page 12 – Type of Account
There is no option to specify Individual – Non resident (Non-Repatriable) account.
Please advise which option to tick mark.
Note that I am an NRI (Non-resident Indian) and want to link my dmat account to NRO bank account.
At the same time, I do not wish to open PIS account.
2) Page 13 – SMS Alert Facility
I am not giving Power of Attorney to any third party.
Please clarify what is this for. I would like to read Annexure 2.4. Where to find this Annexure 2.4?
3) Page 18
Frequency of statement.
I wish to receive holding statement once in a month. However, any transaction/bill details shall be received on daily basis.
Please advise what to tick mark.
4) Page 19
Email id and mobile mentioned on the account opening form belong to me.
Shall I leave Name of relative & relatioship blank OR I need to strikethough or write “Not Applicable”?
Please clarify.
Hi Girish,
1) Type of Account — NRI : Non-Repatriable;
Since your status is NRI. You cannot select individual.
2) SMS Alert Facility — To receive message alerts for shares being debited from your demat account.
3) You can tick “Monthly” —You’ll receive the Contract Notes on day-day basis for your daily transactions.
4) Email ID & Mobile Number — You can mention it in the Client Email & Mobile Number section and sign below.
You can leave that blank.
Hope this clarifies.
Kindly write to [email protected] for more queries.
Hi,
Can you pls confirm if these will be charges for a turnover of Rs 2 lacs – BUY and Rs 2 lacs – SELL. Total charges in my estimate will come to around Rs 1300. The Bank charges may vary if it is HDFC or Axis, but this is the approximate.
====================================================
BUY Turnover Rs 200000
====================================================
Brokerage (Zerodha) 200
STT on Turnover – 0.1% (Zerodha) 200
Trans charges on Turnover – 0.0031 (Zerodha) 6
Service on brokerage – 14% (Zerodha) 28
PIS Reporting Charges (Bank) 100
Processing of sale – Transaction Fees (Bank) 250
Service Tax on above Bank charges 14% (Bank) 49
====================================================
Net charges for a BUY Transaction Rs 833.2
====================================================
====================================================
SELL Turnover Rs 200000
====================================================
Brokerage (Zerodha) 200
STT on Turnover – 0.1% (Zerodha) 200
Trans charges on Turnover – 0.0031 (Zerodha) 6
Service on brokerage – 14% (Zerodha) 28
PIS Reporting Charges (Bank) 100
Processing of sale – Transaction Fees (Bank) -NIL-
Service Tax on above Bank charges 14% (Bank) 49
====================================================
Net charges for a SELL Transaction Rs 548
====================================================
Sorry for the Typo, it is the other way for “Processing of sale – Transaction Fees (Bank)”. It should be Rs 250 for a SALE and NIL for BUY.
Yep, on the sell side there will also be a DP charge of Rs 13. You can check all of this here: http://b.zerodha.com/
Hi,
I am residing in UAE and having NRE account in YES Bank. Please let me know what is the process to open NRE DEMAT account in Zerodha and what documents will be required.
Rajendra, it is explained in detail in the blogpost above.
Hi Nithin,
I have an trading and demat account with zerodha. Recently I have changed my status to nri (NOT US resident) from gulf to be precise, therefore do I need to change the status of demat account or changing resident savings account to nro will be sufficient. if yes, what are the charges & what formalities I need to submit to Zerodha for demat conversion ? Thanks.
Hi Salim,
The existing resident demat account cannot be converted to NRI status. The resident SB bank account also needs to be changed to NRO or you can open a new NRO account with any bank. You’d have to close your resident account and open an NRI Trading & Demat account.
You can write to us at [email protected] for any queries.
Hi,
I am Looking forward to opening an account @ Zerodha. Currently, I am staying in the USA with work visa status, I hold an SBI Bank NRO account. Am I eligible to connect via SBI NRO ?
Also, my family member has India residential Bank accounts….which method will be more convenient for me to establish and perform trading activities from Zerodha platform.
Can someone please highlight fee structure too.
Thanks!
Opening a residential account is easy any day. You can refer to the brokerage calculator here: https://zerodha.com/brokerage-calculator to know about charges.