How NRI can invest in Indian Stock Market

Investing in Indian Stock Market

India Stock Market is quite old in age and has the largest investment base after the US Stock Market. The Indian Stock Market is filled with investments from NRIs all around the world especially from US, UK and the Gulf.  In India Shares are traded in BSE, Bombay Stock Exchange and NSE, National Stock Exchange which are open to NRI investors from abroad. NRI investors are quite worried about the procedure for NRI investment in India Stock Market.

For NRI to invest in India Stock Market

• The main three things are NRE Demat Account, Saving Bank Account and Portfolio Investment Scheme and a trading account. Before starting to trade, these three things must be ensured.
• For NRIs to bring share income to India, an NRO account is essential.
• NRE demat account and NRO account can be opened by consulting a Share trading agency or bank.

Portfolio Investment Scheme PIS for NRI

PIS is an investment Scheme for NRIs to trade in secondary stock market on repatriation basis (NRE PIS account) and on non-repatriation basis (NRO PIS account).  To open PIS account NRI must submit the application to concerned branches of authorized banks and dealers in India. If you are an NRI and are unable to come down to India for this purpose you can have a Power of Attorney for this purpose. Further all Stock Market NRI investments can be manipulated by authorising a Power of Attorney. RBI has authorized some branches of major commercial banks in India to conduct business under Portfolio Investment Scheme. These include HDFC, UTI, ICICI Bank etc.