- As an NRI, you can invest in various financial instruments in India, including equity shares, mutual funds, and exchange-traded funds (ETFs). However, there are specific restrictions and guidelines compared to resident Indian investors.
- Investment Options for NRIs
- Indian Equities:
- NRIs can invest in Indian equities through the Portfolio Investment Scheme (PINS).
- Only delivery-based trades are allowed, meaning you must hold the securities for more than one day in your Demat account.
- Intraday trading is not permitted.
- Mutual Funds:
- NRIs can invest in mutual funds through NRE/NRO accounts.
- Investment options include lump-sum investments or systematic investment plans (SIPs).
- Exchange-Traded Funds (ETFs):
- NRIs can invest in index, gold, or debt ETFs, but currency- and commodity-based ETFs are restricted.
- Note: If you are based in the USA or Canada, consult a tax advisor before investing in ETFs due to additional compliance requirements.
- Futures & Options (F&O): NRIs can trade equity and index-related derivatives on a non-repatriable basis using their NRO bank accounts.
- Restrictions:
- Intraday trading is not permitted.
- Trading in currency and commodity derivatives is prohibited.
- Key Restrictions for NRIs
- NRIs cannot trade in currency and commodity derivatives.
- All trades must comply with RBI and SEBI guidelines under the PINS or through designated investment accounts.
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