Can NRI trade in Futures & Options?

My friend is an NRI. he wants to trade in Futures. Bit I remember that I’ve read somewhere that an NRI can trade only in equity segment.

Actually it is the opposite…you can trade only derivatives and not equities

No, NRI's can't trade in derivatives (either futures or options). They can trade only in equity delivery. 

If they want to trade F&O, they have to open a custodial account with a clearing member and come through that  route. Quite complex, and makes sense only if a person has corpus of atleast $100k. 

Check this post for more. 

Hi @nithin

I currently trade in FnO through Axis Direct with my NRO Non-PIS account. There is no exorbitant rule with them, to have a corpus of $100k [₹65,00,000] as you have mentioned.
If I wish to migrate to Zerodha, what should I do? Is it even possible?
Can you explain in plain simple English please, as I am unable to understand the jargons. :slight_smile:


Hi, @saiography Yes you can trade in the F&O segment of the exchange out of the rupee funds held in India on a non-repatriate basis. It is a little complex to get started as trading on F&O requires an NRI to get a Custodial Participant (CP) code. We at Zerodha have tied up with IL&FS for custodial business, and hence this CP code is assigned by IL&FS.

Please also confirm if you have a CP code as well? To trade with Zerodha, you can link the same Axis NRO (Non-PIS) account. Once you have the CP code, all the funds for trading F&O will sit with the custodian, similar to how all your funds for trading stocks sit with your bank. A typical starting portfolio size for a custodial account is Rs 75lacs.

The brokerage charges at Zerodha for F&O trades are Rs.100/order and IL&FS charges are 0.00500% on total turnover for Futures and 0.05000% of total turnover for Option trades.
The initial circulars that form the base of this activity are available at the following URL’s:

For more queries, please write to [email protected].

If I understood this correctly that if I don’t have 75lakhs with me, FnO trading with Zerodha is not possible?
Is it different for each custodian? Because this requirement is not applicable with my current tie-up with Axis Direct.

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