Can some one living in the USA day trade in Indian stock market?
Thank you!!
As per the RBI rules, NRIs cannot participate in intraday trading. They can only trade in the delivery segment, selling a stock only T+2 days after the purchase.
To clarify further, let me explain who an NRI is.
● Any Indian citizen who has not resided in India for at least 182 days during a financial year is considered an NRI.
● Any Indian who has not stayed in India even for 60 days, even though they have fulfilled another condition of staying in India for 365 days for 4 years, will also be considered an NRI.
There are several other restrictions for an NRI. As an NRI, knowing the restrictions will help you trade better. So, I am stating some of the most restrictions for your guidance:
● Not just intraday, even BTST, STBT and short selling is not available for NRIs
● NRIs are also barred from trading in the currency derivative and the commodities segment. So, besides equity, NRIs can trade in the F&O segment.
● As an NRI, you cannot hold more than a 10% share of any Indian listed company. In the case of banks, this percentage goes up to 24%.
● In PIS (Portfolio Investment Scheme), NRIs are only allowed one PIS for the repatriable shares and one PIS account for non-repatriable shares.
NRIs can also open a Demat account directly with a broker, but they need to furnish additional documents.