HOW TO INVEST IN THE SHARE MARKET IN INDIA FOR NRI?

500 Per Crore / Oct 21, 2021

Indian stock market is always the best investment option for a NRI. Being an NRI, you should look for selecting the best avenues of investment back home as you can zero in on investing in stocks. After USA and Japan, the Indian stock market has the third largest base globally with more than 20 million investors. To invest in the Indian stock market, the Foreign Exchange Management Act has stipulated several rules for the NRI's.

In this blog, we'll be discussing who is a NRI, what is a NRE account and how to invest in stock market.

 

WHO IS A NRI?

A NRI is an Indian citizen who resides abroad or a person of Indian origin. In a financial year, a person should stay in India for more than 60 days but less than 182 days. A person can also have a NRI status, if he or she is deputed in the foreign country for more than 6 months.

 

WHAT IS A NRE & NRO ACCOUNT?

A NRE account is said to be external account as the money deposited in this account will be converted in Indian Rupees. This means that investors can deposit money of any currency and withdraw in Indian Rupees. The amount deposited in an NRE account including the principal and interest is completely repatriable and a NRE account can be of different formats like Savings, Current or Recurring Deposits.

If you're a NRI who have income sources in India like dividends, pension, rental income, etc., then it's recommended to go ahead with your NRO account. Depositing money earned in India through NRE and transferring the money outside the country will result in tax-free.

 

HOW TO INVEST IN THE STOCK MARKET THROUGH PIS?

Being an NRI, you can invest in the Indian stock market after opening a Non-Resident External (NRE) account with an RBI-approved bank. Remember, a NRI can only have one PIS account for investing in the stocks.

According to recent government guidelines, a NRI wouldn't require to open a NRO account to invest in the Indian stocks through PIS. This is because investing in the Indian stocks through NRO account will considered as an investment conducted by the Indian resident.

 

CONCLUSION:

Being an NRI, you can invest in the Indian stock market through RBI regulated platforms for PIS. At first, you need to open a NRI trading account with a trusted financial partner. Hence, choose a trusted financial partner like 500 per crore who can guide you to choose the best-performing stocks in the market.

 

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