What are the restrictions on NRO and NRE account?

Zerodha
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Hi All, I need to know if I can short index options/stock options with a NRO/NRE account. What are the restrictions of NRO/NRE account?

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@AkshayAtur

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Yes, You are allowed to short index options/stock options only through the NRO Account (Without repatriation). However, you will have to come through the custodian, currently we at Zerodha have tied up with Orbis Financial Corporation Limited.

Please note that custodian plays a major role since they are the one who clear your FNO trades.

In case you have any further queries, Please write to [email protected]

1 Like
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Thanks Siyab,

Can I pledge stocks and liquid bees and use the margin for trading in NRO account?

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Yes, You can pledge and use the margin to take the positions. But this will have to do with the Custodian.

Note:- If you hold a demat account with us, we wouldn’t provide you any collateral on those securities/liquid funds for F&O trading for NRIs since the settlements happen through a custodian.

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Why do NRI needs to have a custody account to trade ?

I mean what is the logic reason behind this?

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Are NRI’s allowed to buy liquid funds via zerodha platform and pledge it for collateral.
how can they pledge stocks for collateral margin ?
is margin benefit applicable for NRI’s as well ?

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Already answered above What are the restrictions on NRO and NRE account?

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Hi ,
I found the below information on Zerodha website
NRI investors may trade in the futures & options segment of the exchange through an NRO account.

As an NRI, you are required to get a Custodial Participant code (CP code). We at Zerodha have tied up with ORBIS for custodial business, and would help the NRI client receive a CP code from ORBIS.

In your reply above you have mentioned that custodian will provide margin against securities. where can i find this process and more information from custodian site ?
Does ORBIS provide margin?

Could you also elaborate your answer provided in this thread quoted below:

Note:- If you hold a demat account with us, we wouldn’t provide you any collateral on those securities/liquid funds for F&O trading for NRIs since the settlements happen through a custodian.

I am not sure a normal person understands the whole complex process but your answer doesn’t help either.

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Once client gets CP code, funds will lie with Orbis… If the client pledges, collateral will be available in his trading account. How will he be able to use the trading account funds into Orbis account for margin