How does NRI Trading Accounts work In India?

The Indian stock market offers many lucrative opportunities to investors. Many Non-Resident Indians are always looking to invest in their home country. Investing in the Indian market can help you make tremendous profits, however, the procedure to invest is different for NRIs. Unlike resident Indians, NRIs cannot use a regular Demat Account or a trading account to do so, but they can open an NRI Trading Account through the Portfolio Investment Scheme (PIS).

NRI Trading Account

As a Non-Resident Indian if you wish to invest in the Indian stock market, you need to open an NRI Trading Account. This allows to you invest in IPOs, Stock Derivatives, Mutual Funds, Equities, and Bonds listed on the Indian Stock Exchanges like the National Stock Exchange and the Bombay Stock Exchange.

Types of NRI Accounts

Non-Resident Indians managing their funds and investments in India can open the following accounts.

NRE Savings Account

There are many NRIs who send money back to India to their loved ones. This account is perfect for NRIs who want to send their money earned, in the currency of their country of residence to India and keep it in Indian currency.

NRO Savings Account

An NRO Savings Account is perfect for NRIs to manage their income in India. This account can be used to store the money received as rent and dividends from property and investments in India.

FCNR Account

An FCNR Account or Deposit helps NRIs’ keep their money in the currency earned in their country of residence.

PIS Account

With a Portfolio Investment Scheme Account, you can buy and sell shares and debentures of Indian companies on a recognized stock exchange on a repatriable basis.

It’s always advisable to have an NRI Account in India, however, here are some advantages and disadvantages that you should know about.

Advantages of having an NRI Account

-        Through PIS you can buy and sell shares and debentures on the Indian stock exchange

-        NRE Savings Accounts and FCNR Deposits allow tax-free interests

-        An FCNR Deposit helps NRIs save their money in India while avoiding currency fluctuations

-        NRIs don’t have to be in India to invest in the Indian stock market through a PIS Account

Disadvantages of having an NRI Account

-        NRIs wanting to invest in FCNR Deposits can only do so with a fixed deposit

-        Understanding NRI Accounts may be complex and you might need guidance in dealing with the same

As you can see, the advantages outweigh the disadvantages of an NRI Account. The disadvantages too can be easily taken care of if you have an account that suits your needs best with a bank that’s always looking out for your best interest. SBM Bank India offers a range of NRI Accounts, including a PIS Account that will guide you in investing in the Indian stock market and help you make lucrative returns.

Here are some benefits of the SBM NRI Portfolio Investment Scheme (PIS) Account

●      Invest in India from any part of the World

●      Buy, Sell, Repatriate at a click

●      Enjoy Smooth Transactions

●      3-in-1 Account with Competitive Pricing

●      Competitive Brokerage and Value-Added Subscription Plans

●      Award-winning Research Team

●      Dedicated Support team

Not only do they offer a world-class PIS Account, but as a customer, you also have various other privileges and benefits. The bank also offers a dedicated support team to solve all your doubts. Not just that, but they also have experts to guide you in your financial journey and help you choose accounts and investments that best suit your financial goals. With SBM Bank, not only do you enjoy a unique and premium banking experience but also the finest privileges customized to suit your suave taste and lifestyle.

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