If yes then what type of account can he open, what segments can he trade in and what are the documents required?
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Yes he can trade in the Indian markets,
An OCI by status is an NRI, so firstly the person will need to open NRE/NRO bank account and with a bank which offers PIS (portfolio investment scheme). Documents are usually standard, you can find them on the website of the bank.
Once he has this account, he can trade on Indian stock markets, but only on the equity (delivery based only) segment through PIS account.
OCI again like NRI’s are not allowed to trade intraday equity or trade on derivatives (F&O), allowed to trade only delivery based trades through PIS.
If an NRI/OCI needs to trade in F&O, he has to come through the custodial account route, which is a complex process and makes sense only if the quantum of funds is quite large.
Documents for NRI trading/demat and for Custodian accounts could differ from one brokerage to another, it is best to ask the broker on this.
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It may also be interesting to note that all contract notes for the trade (Delivery based) are mailed across to the bank in which the person has a PIS account.
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rakesh, do you mean oversees corporate institution? if so then they will come under a radar of FII’s .
OCI - Overseas Citizenship of India. This is given to Individual who have surrendered their Indian Passport / Citizenship and taken citizenship of other country.
Thanks Nithin, but if the person still holds an Indian PAN Card and address proof and also a Savings Bank Account in India then can he open a normal trading account?
This is a grey area, he can use the PAN, local Address proof and savings account to open a normal account, but he cannot declare that he is an OCI, if he declares he cannot.
If the person( OCI Card holder) is living in India for last 15 years can he open the normal account ?