NRI Corner: How To Open An Equity Trading Account In India
Last week we understood, who is consider as NRI or PIO. Now, being a NRI or PIO if you want to invest in equities in India, your home country then the following blog will definitely help you.
With rapidly growing economy, Indian Stock Markets are booming as well. In fact, India has the largest investor base in the world after the US and Japan. That’s why Today, the world is looking at India as an investment destination and you can also be a part of the Indian growth story just by investing in Indian share markets.
For that you just follow below steps and start equity trading.
i) First of all, you need to open a bank account with designated branch of any authorized dealer (Bank) authorized by Reserve Bank of India (RBI).
ii) Then, you need to approach the designated bank to administer the PIS (Portfolio Investment Scheme). Because as per RBI guidelines, NRI can invest in Indian stock market under the Portfolio Investment Scheme (PIS) – through
the secondary market.
PIS is the scheme of RBI under which NRI can purchase /sell shares /convertible debentures of Indian companies on Stock Exchange. All sale /purchase transactions are to be routed through the designated branch.
iii) Open a Demat Account with a Depository Participant.
iv) Open a Trading account with a SEBI registered broker to execute trades on your behalf on the Exchange.
Because NRI cannot transact in India without nominating a stock broker. A trading account/ Brokerage account allow you to purchase/ sell the stocks which you tell them by paying professionals fees. The fee you pay is their commission, which known as Brokerage and can vary from broker to broker.
You can open bank account, demat account and trading account with one bank, which can provide you all in one service or else you can go for professionals for trading account. As in Market, there are many brokerage firms which
can gives you best service.