A complete guide on USA NRI Trading Account in India
Last updated August 22, 2026
This IPO News guide/article covers “A complete guide on USA NRI Trading Account in India”. The page is organized around accounts required for us nri trading in india, us nri trading guide – rules and regulations, 1. foreign account tax compliance act (fatca), 2. restriction on solicitation under sec, us nri trading rules and regulations in india. The source record was published on \",\"Friday, October 13, 2023\",\". IPO News presents the structured facts and tables in its own layout and wording.
Topics Covered
- Accounts required for US NRI trading in India
- US NRI Trading Guide – Rules and Regulations
- 1. Foreign Account Tax Compliance Act (FATCA)
- 2. Restriction on Solicitation under SEC
- US NRI trading rules and regulations in India
- US NRI Investment Segments
- Taxation on US NRI Equity and Mutual Fund Investment
- Zerodha Trade@20
- Compare Stock Brokers Side-by-Side
Key Facts
- India's trusted financial research platform since 2015. Live IPO GMP, subscription data, allotment status, Rights Issues, NCDs and unbiased stock broker reviews.
- Unmarried: If you are not yet married, and the total value of foreign assets or investment is above $50,000 on the last day of the taxation year or more than $75,000 at any point of time during the tax year.
- Married filing separate ITR: If any married person files a separate income tax return, the total investment threshold is $50,000 on the last day of the tax year or more than $75,000 anytime during the tax year.
- NRI cannot invest more than 5% of the company’s paid-up capital.
- Aggregate NRI investment in a company shall not exceed 10% of total paid-up capital.
- Short-term capital gain: If an NRI sells shares or equity mutual funds within 1 year and debt mutual funds within 3 years, the profits derived are known as short-term capital gain.
- Long-term capital gain: Profits or capital gain received on sell of stocks or equity mutual fund schemes after 1 year or debt mutual funds after 3 years is termed as long-term capital gain.
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Data Tables
| Meaning and Purpose | Charges | |
|---|---|---|
| NRI NRE or NRO Bank account | An NRE (Non-Resident External bank account allows NRIs to manage the income earned overseas in USA whereas an NRO account is used to manage the income earned by them in India be it in the form of rent, pension, dividends, etc. NRE account allows US NRIs to invest on a repatriation basis whereas an NRO account is non-repatriable. Read differences between NRE and NRO account | One-time NRI account opening fee, Bank service charges |
| PIS account | Portfolio Investment Scheme (PIS) is a RBI scheme to enable NRIs to transact in Indian stock exchanges. PIS is mandatory for investment via NRE bank account whereas PIS approval is not mandatory for trading through NRO savings account. RBI has authorized certain banks to provide PIS authorization to NRIs. | One-time PIS account opening fee, PIS annual account maintenance charges |
| NRI Trading Account | It is same as those of residents as a NRI trading account enables US residents to purchase and sell shares listed on BSE and NSE. An NRI can open a 3-in-1 account with banks (Trading + Demat + Bank with PIS account) for hassle-free investment or can open a 2-in-1 account (trading and demat) account and map it with either NRE or NRO account. | One-time NRI trading account opening fee, NRI trading brokerage, Transaction charges, etc. |
| NRI Demat Account | Securities bought will be transferred or credited in NRI demat account in an electronic form. Thus, it provides safety to all NRI investments and as an NRI can have 2 seperate demat account linked with NRE and NRO accounts. | One-time NRI Demat account opening fee, NRI Demat account maintenance charges per annum |
| Custodial Account | Only required to open if you want to trade in equity derivatives. | One-time custodial account opening fee, Clearing charges |
| Short-term capital gain tax | Long-term capital gain tax | |
|---|---|---|
| Equity Shares | 15% | 10%) |
| Equity mutual funds | 15% | 10% |
| Debt mutual funds | 30% | 20% |
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