Hi Zerodha Team, It is very dicey situation and Please help to find some solution.
- I have nre account with zerodha which has my stocks holding, I have PIS account linked to it.
- I am not able to make use of these holding to pledge and trade against it. I have spoken with your partner Orbis and they told they only allow F&O with cash.
Could you please find some solution to it. It is a standing issue and I am looking for solution remaining on zerodha platform. If there is no solution, I may need to find alternatives.
For NRI, remittance can be done in NRE as it has some tax benefit.
please respond and see if requirements can fit in please.
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Appreciate update on this concern please
Maybe this will be of help (copied from zerodha). From the below it seems NRI cannot pledge their holding and obtain margins.
- The brokerage charges for futures and options are Rs 100 per order.
- The NRI client cannot pledge their holdings while trading to obtain margins.
- The NRI client isn’t allowed to trade on the equity segment using the same account.
- Funds are to be transferred to the Orbis account and all withdrawals will need to be requested from their end.
NRE account trades are reported to the Depositories {CDSL & NSDL} and RBI. One is allowed to trade in equities only through this account {No F&O trading} is allowed.
NRE holdings cannot be pledged to obtain margins for F&O trading as these are 2 different accounts. Additionally, with NRE account - pledging stocks is restricted by FEMA regulations & PIS regulations {NRE}:
Here’s a snapshot of the same for your kind perusal; Please check this link for the Notification
However, you may be able to pledge shares from an NRO {non-Repatriable} account with the custodian. Currently, there isn’t a process through Zerodha for the same. This is being worked with Orbis. There’s no timeline for now. You’ll be updated once this is available.
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