Can OCI open a trading account to trade intraday and FNO

Overseas citizen of India.
A person who has renounced Indian passport/citizenship and got foreign country citizenship.
In this case USA citizenship is acquiared.

I am wondering if this OCI can open a trading account in India - only for intraday and FNO trading
(not delivery based trading)

A separate question …if he wants can he open both trading and demat account(for delivery based - investment ) ?

If yes to either of the question -
What is the procedure and documents …please give details.

@AkshayAtur Can you.

one of my friends is having both country ( USA and INDIA) passports !
why did you happen to renounce the Indian Passport ?

Quoting from the NRI FAQs by NSE:
PIOs and OCIs do have parity with NRIs in respect of all facilities available to the NRIs in the economic, financial and educational fields except in matters relating to the acquisition of agricultural/ plantation properties.

You cannot trade intraday in equity (cash market). Short selling is not permitted and you have to take delivery of shares purchased and give delivery when you sell.
In F&O, intraday trading is allowed. Futures & Options is allowed in Rupee funds held in India on non-repatriation basis (NRO).

Yes, you can open a Trading & demat account. Check this link for the process

Please do write to [email protected] in case you have any additional queries.

Thanks but I am not sure about PIS account for NRO
Please review this link

Is it possible that NSE and Zerodha website is not updated about PIS account?

Also on this link it says intraday trading is allowed …

PIS Permission for NRO accounts are not issued any more, however, PIS accounts are re-designated as NRO Invest Savings account/Special Savings accounts. This is done since there involves a complex TDS calculation and a significant operational overhead being the reason not currently supported by most brokers.

The Notification No.FEMA.361/2016-RB issued by RBI brought about this change in FEMA where the PIS requirement for NRO was removed.

However, as a broker this service can be offered only when one can ensure that they can support the below process:

The meaning of the above is explained as under:
“(Net of applicable taxes)” - Like how the bank currently deducts TDS, brokers have to deduct TDS and make payout when the client is withdrawing funds. If the broker doesn’t know the acquisition price, 16.995% TDS of entire sell value has to be deducted and paid. Otherwise, it is 16.995% of capital gain. (Short-Term Capital Gain)

Once Zerodha starts offering the Non-PIS route, this shall be updated on the website and the process for the same shall be added too.

Seems kinda like a grey area.

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I’m sorry. But you must be mistaken. India doesn’t support dual citizenship. If you get citizenship of a different country (e.g. : U.S.) then your Indian citizenship is cancelled. Your friend must not have US citizenship. He probably has greencard or visa of US.

So because this will lead to complex TDS deduction by broker and operational overhead - Zerodha still does not open non-pis nro accounts correct?

You can now open a NRO non-PIS account, more details here.

it says for FNO trading - one needs cp code - is it something you provide or we get from third party …what are costs associated with that?