Confused about NRO/NRE separate account for FNO and equity

I have found that for FNO intraday as well as positional trading one needs NRO account but
for equity either intraday/delivery one needs NRE/PIS account.

Is it true that you need two separate accounts ? if yes why?
Can we have only one account that can cover all? if yes what type of account?

Also I found for NRO - you need custodian account …what are the charges for custodian ac …and do they require 25 lac deposit per client for such account?

@AkshayAtur @siyab @Bhuvan @siva

Regulations state that for trading F&O, it’ll need to be through the Rupee funds held in India on non-repatriation basis (NRO) only. An additional requirement is to obtain a custodial participant (CP) code.

NRIs have to take delivery of shares purchased and give delivery of shares sold; They cannot trade intraday or BTST. Not necessarily Equity has to be through the NRE route, you can also trade in Cash markets (equities) through an NRO account too. Check this to know the differences between NRE & NRO accounts.

However, if you’re opening an NRE account then there’s the additional requirement of a PIS account which is a scheme introduced by RBI that has enabled NRIs to trade in the markets.

Since F&O cannot be traded on the NRE account, you’ll open a separate trading account for this purpose linking the NRO account (bank).

Hence, the need to have 2 accounts.

Yes, you’ll need a CP code issued by a custodian. Zerodha, have tie-ups for custodial business with ORBIS.

They charge Rs. 150/crore for Futures and Rs. 1500/crore for Options; Tariff sheet below

Write to [email protected] and the team will connect you with Orbis who’ll assist you with the process.

There isn’t any deposit but you’ll need to give a self-declaration of your Net-worth which is required by the custodian for obtaining a CP code.

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Is it possible to link NRE (NON RESIDENT EXTERNAL) Bank account to zerodha fir trading?

For trading in F&O - not possible; You’ll need to link an NRO {Non-Resident Ordinary}.

If you wish to open an NRE account {trading & demat}, please go through this link.

If you’re planning open a normal {rsident} account and link an NRE account - this isn’t allowed.