Which account should i open?

NRI
1

I am moving out of India in 2 weeks. So i closed my current zerodha demat account.

I would like to open an nri account and mainly trade derivatives and invest in mutual funds.

Can someone explain me about PIS and non-PIS and what account should i open for derivatives and mutual funds

1 Like
3

I work in Singapore and have anNRO non-PIS account with Zerodha. Works fine.

  • PIS (Portfolio Investment Scheme): Required if you want to invest in equity delivery shares using funds from your NRE/NRO bank account. Here, every buy/sell is reported to RBI via your bank.
  • Non-PIS: Cheaper and simpler. Needed for mutual funds and F&O trading. Brokerage is ₹100 per order. RBI reporting is not required.

For your case (Derivatives + Mutual Funds):

  • You don’t need a PIS account.
  • An NRO Non-PIS trading & demat account is enough for mutual funds and F&O.
  • Do note that NRIs can only trade F&O through a custodial account. Zerodha does this via their custodian partner Orbis Financial. So you’ll need to open an Orbis custodial account along with Zerodha, support can help with this.
  • I think there is some restrictions in holding equity/mutual funds when custodian is involved. If I remember correctly, it’s around pledging holdings for margin. May be someone from zerodha can clarify here.

Edit
Brokerage is 50/- now

4

I read somewhere some time ago, that CP isn’t required

And Mutual Funds for NRIs are direct funds or regular funds?

5

Can any zerodha member reply to this please?

6

Hey @Vinodh_Seemakurti , if you’re mainly into F&O and mutual funds, you can open the account Non-PIS route. For derivatives and MFs, Non-PIS is sufficient and way simpler.

This is detailed here:

7

I think recently govt allowed NRIS to trade in derivatives, i think i read it somewere.

8

Can read this: SEBI | Operational Efficiency in Monitoring of Non-Resident Indians (NRIs) Position Limits in Exchange Traded Derivatives Contracts - Ease of Doing Investment

9

@nithin_kumrr ?

10

It’s direct mutual funds. Missed it, sorry.