Can NRIs invest in US stocks? (2024)

FAQs

Can NRIs invest in US stocks? ›

Yes, Scripbox

Step 2: Get Your KYC done

Some fund houses may also insist on an in-person verification too. Many mutual fund houses in India don't allow NRIs from the USA and Canada to invest in their schemes because of the cumbersome compliance requirements under the Foreign Account Tax Compliance Act (FATCA).

Zerodha offers stock trading and investment services to NRIs in partnership with 3^rd party companies including: NRI Bank Account - HDFC Bank, IndusInd Bank, IDFC FIRST Bank and Axis Bank. Custodial Account - Orbis Financial Corporation Limited. Demat Account - Central Depository Services Limited (CDSL)

Yes. You can invest in NASDAQ from India via direct or indirect investment routes. As per the direct routes, you can open an overseas trading account with a domestic or international brokerage firm. Alternatively, you can also start investing via the indirect route through mutual funds and ETFs.

NRI to Resident Indian

They have to open a resident Demat account and transfer all existing investments to it. While you were a resident Indian, will have to be closed and you would need to transfer the shares to an NRO Demat account. You can continue to hold these shares in the NRO Demat account or sell them.

NRIs must pay Tax on short-term capital gains on debt funds as per the person's income tax slab and equity funds at a flat rate of 15%. On long-term capital gains on debt funds, they must pay 20% tax with indexation and 10% tax without indexation, and no tax on the sale of long-term equity funds.

The limit for NRIs and PIOs stock investments is 10% of an Indian company's paid-up capital. NRIs can also only participate in delivery-based trading. Hence, they cannot participate in intraday and commodity and currency trading but are allowed to trade in F&O.

Zerodha is the best and largest broker offering online NRI trading services. Prostocks is another online discount broker which is a very popular amount the NRI traders for its low-cost NRO Non-PIS trading account. ICICI Bank is the most popular full-service broker. They offer an NRI 3-in-1 account.

The Indian stock market offers a number of investors opportunities to trade. Regardless of whether you are an Indian resident or an NRI, as long as you are an Indian citizen, you are eligible to open a Demat account in India. If you are an NRI, you can open an NRI Demat account.

Are US stocks taxable in India? ›

Indian investors are subject to a flat tax rate of 25% on dividends from US stocks, with the tax withheld by US companies. Reinvested dividends are added to the investor's income and taxed accordingly. Capital gains from selling stocks are taxed as either long-term or short-term gains.

Yes, clients can have two separate trading accounts based on NRE & NRO.

RBI Guidelines For NRI Investment In India

NRIs must possess a valid Indian passport or any other government-authorised travel document. NRIs are subjected to Indian tax regulations on the amount they invest in the country. NRIs are allowed to invest in Indian stocks, real estate, mutual funds and bank deposits.

So, the Demat Account status after the residency change will be different. Banks require you to close your Resident Demat Account and open a new NRO Demat Account or a Non-Resident External Demat Account under the Portfolio Investment Scheme (PIS).

An NRI choosing to invest in SBI MF currently cannot make the investment in foreign currencies. The NRI investor needs to give a cheque or draft in rupees from his/her NRE, NRO bank account in India.

Non-resident Indians (NRIs)/ Persons of Indian Origin on full repatriation basis (subject to RBI approval, if required) or on non-repatriation basis .

If you're an NRI looking to invest in mutual funds market in India, then you must open either NRO or NRE account. If you're a novice or an experienced investor, you can invest in capital markets such as stocks, dividends, exchange-traded funds (ETFs) and mutual funds, subject to terms and conditions.