We understand that as an NRI you look to invest differently. At Mirae Asset Sharekhan, we are equipped to help you with all your financial needs. As one of India’s leading brokerage firms, our endeavor is to simplify the markets for you and help you make the right investments. With an ever-innovating digital team, 4,000+ centres across 1000+ cities and 2.9 million customers throughout India, we are well-equipped to help you reach your goals.

Sign-up for a Mirae Asset Sharekhan Online Trading Account

Are you close by? Visit your nearest branch. Tap here to find a branch near you. Phone: +91 022-6115 1122 / 022 6226 3231 | Email: nridesk@sharekhan.com

What can NRIs invest in, in India?

  • Equities

    Equities are simply stocks and shares. When you buy the stocks/shares of a company, you own equity of that company. Equities are traded in a stock exchange

  • Derivatives

    Opted for by more advanced investors, a Derivative is a contract between two entities which depends on underlying assets of some kind to determine value. Futures and Options are types of derivatives.

  • Mutual Funds

    A mutual fund is a type of financial instrument that pools in funds from many investors and invests in securities like stocks, bonds, money market instruments, and other assets. MFs are operated by professional money managers.

  • IPOs

    A private company offers its shares to the public for the first time through an Initial Public Offering (IPO). This allows the company to raise capital speedily and also gives investors a chance to own a part of the company. 

  • Exchange Traded Funds

    Exchange Traded Funds (ETF) are investment funds that hold assets such as stocks, bonds and commodities. They usually operate with an arbitrage mechanism designed to maintain value at close to its net asset value.

  • NCDs & Bonds

    Non-Convertible Debentures (NCDs) and Bonds are used by companies and governments to raise long-term capital. NCDs and Bonds are both fixed-tenure debt instruments where investors receive regular interest pay-outs at a fixed rates.

Benefits of opening an NRI account with Mirae Asset Sharekhan

  • Dedicated Relationship Managers to help you reach your financial goals
  • Research reports for every asset class to keep you updated with trends in the stock market
  • Real-time portfolio tracking with price alerts to keep you updated about your investments

  • Secure transactions with automated funds and securities settlements

For Indian Branches

Demat Annual Maintenance Charges ₹ 500
Sales through Sharekhan DP charges NIL
  • Applicable GST will be levied over above-mentioned charges.

Brokerage

  • Equity Transactions: 0.50%
  • Futures: 0.5% on each leg.
  • Options: Rs.50 per lot.

* Above brokerage rates may vary depending on turnovers.

Dubai Representative Office

  • Phone: 009714-3963889 and 0097155-8990251

  • Email: satish.pillai@sharekhanone.com / mihir.shah@sharekhanone.com

  • Address: 213, Nasir Lootah Bldg. Opposite the Pakistani Consulate, 6th Street, Khalid Bin Walid Street (Bank Street), P.O. Box: 120457, Dubai, UAE 120457

List of Bank Charges

ParticularsHDFC BankIndusInd BankAxis BanksKotak BankIDFC First BankICICI Bank
Contract Note Reporting Charge* (CN) ₹ 100 Per CN No Charges No Charges ₹ 100 Per CN ₹ 100 Per CN ₹ 50 Per CN
Sale Proceeds Charge(For TDS calculation)

Transaction value upto 50,000= ₹ 100
Transaction value 50000 to 3,00,000= ₹ 250
Transaction value above 3,00,000= ₹ 500

 No Charges No Charges ₹ 100 to ₹ 300 (More than One Scrip in CN) No Charges ₹ 120 Per CN
PIS Issuance Charges ₹ 1000 No Charges ₹ 1000 ₹ 1500 NIL ₹ 1000
PIS Annual Maintenance Charges ₹ 1000 ₹ 500 ₹ 1500 ₹ 1000 ₹ 500 ₹ 1000
Avg. Quarterly Balance ₹ 10000 ₹ 10000 ₹ 10000 ₹ 10000 ₹ 10000 Depends on Nature of Account

Note* - Above charges + applicable GST

CN - Contract Note

TDS Charges 

Short Term Capital Gain Long Term Capital Gain
Basic Rate Surcharge Cess Total Tax Rate Basic Rate Surcharge Cess Total Tax Rate
20 15 4 23.92 12.5 15 4 14.95

Note - TDS is deducted by Banker. For further clarifications, get in touch with your PIS Bank.

  • You can transfer foreign currency from overseas Bank account to NRE Bank account.
  • Non-resident External Account (NRE) is a bank account where both the principal and the interest earned can be taken back to your country means funds can be repatriated.
  • Demat Account mapped with NRE Bank account is called as NRI-Repatriable Demat Account.
  • Money kept in this account can not be taken back to your country. This is Non-repatriable Bank Account.
  • You can use this account for funds originating in India such as rent, dividends, pension etc.
  • RBI has allowed repatriation of funds from NRO account up to 1 Million USD every financial year.
  • Demat Account mapped with NRO Bank account is called an NRI-Non Repatraible Demat Account.

PIS is RBI’s approval for NRIs to purchase and sell shares in secondary market. PIS Bank account is opened separately along with NRE / NRO savings account.

Below are the transactions covered under PIS:

  • Fresh purchase from the secondary market as an NRI.
  • Sale of shares bought under PIS.
  • PIS does not allow transactions in IPOs, Mutual Funds, Derivatives.

All transactions not covered under PIS falls under Non-PIS. NON-PIS include:

  • Preference Shares
  • Non Convertible Debentures (NCD) and Bonds
  • Foreign Account Tax Compliance Act (FATCA) is a legislation introduced by the Unites States of America (USA) Department of Treasury and Internal Revenue Service (IRS) to prevent US persons from evasion of tax.
  • Common Reporting Standards (CRS) is to aid automated exchange of information between Bilateral Treaty partner countries about account holders / investors maintaining account in foreign jurisdictions.
  • For FATCA and RS, agreements signed by Government of India which obliges banks and financial institutions to report information about such account holders (having other country’s indicia) to tax authorities.

Important Procedures

  • Trading Process For Cash Segment

    Limit gets added to Mirae Asset Sharekhan A/c. Start Trading

    • Maintain funds in your PIS Bank A/c
    • Banks share PIS Balance file with Mirae Asset Sharekhan
    • We update PIS balance in Trading limit
    • Log into Mirae Asset Sharekhan A/c & start trading

  • Settlement Procedure

    In India, settlement cycle is of T+1 day. Under PIS guidelines, NRI Trades needs to be reported to PIS Bank within 24 hours of Trades.

    • Trades are reported to PIS Bank
    • For a BUY transaction, the bank debits PIS A/c and makes the payment to the broker.
    • Funds are debited from PIS A/c on T+1 evening
    • For a SELL Transaction, the bank credits PIS A/c Net TDS on T+1 day.
    • Sale proceeds are credited to PIS A/c on T+1 day evening

  • Trading Process For Derivatives Trading

    • Login to Mirae Asset Sharekhan NRO NON PIS Account
    • Visit homepage - go to Move Funds option
    • Select Bank Account & Transfer Funds
    • Limit updated - start trading
    • Futures & Options trading is possible through NRO NON PIS account.
    • NRO bank account is mapped with this trading account.
    • Exchange allots CP code for NRI FNO trades. All NRI FNO orders are sent to exchange with CP code

  • Only Delivery based transactions are allowed in Cash Segment. No Intra-day trading is allowed in cash segment.
  • Intraday, Short sale, buy today sell tomorrow (BTST) trading not allowed.
  • 100% Funds need to be available in account while buying the shares, no exposure is allowed.
  • An NRI can deal with only one bank at any point of time. PIS (Portfolio Investment Scheme) approval can be issued by only one bank.
  • NRI will be allowed to invest only up to 5% of the paid up capital of the company individually. NRIs are NOT allowed to buy certain scrips under this regulation. Report of the same is available on NSDL & CDSL.
  • For Non-PIS sale transactions like sale of IPO share, resident status shares, declaration in specified format has to be submitted to Bank.
  • For Bonds, NCDs, preference shares payment need to be made through NRE/NRO SB account.

NRI FAQs

As per Indian Income Tax Act, 1961, any Indian person staying outside India more than 182 days is considered as NRI (Non-Resident Indian).

An NRI (Non-Resident Indian) is an Indian citizen who is either residing outside India for employment, business, or other valid purposes, or staying abroad for an indefinite period. As per the Income Tax Act, an individual qualifies as an NRI if they spend less than 182 days in India during a financial year. 

Categories of NRIs:

  • Indian citizens who stay abroad for employment or for carrying on a business or vocation or for any other purpose in circumstances indicating an indefinite period of stay outside India.
  • Indian citizens working abroad on assignments with foreign Governments/government agencies or International/Regional Agencies like the UNO,IMF,World Bank, etc.
  • Officials of the Central and State Governments and Public Sector Undertakings deputed abroad on temporary assignments or posted to their offices (including Indian Diplomatic Missions) abroad.

PIO is person of Indian Origin. He/ She can open account in NRI capacity.
A citizen of any country (other than a citizen of Bangladesh or Pakistan) is deemed to be a Person Of Indian Origin (PIO), if,

  • He, at any time, held an Indian passport, or
  • He or either of his parents or any of his grand parents was a citizen of India by virtue of the Constitution of India or Citizenship Act, 1955, or
  • A spouse (not being a citizen of Bangladesh or Pakistan or Sri Lanka) of an Indian citizen or of a person of Indian origin is also deemed to be PIO.

Yes. Authorized dealer have been permitted to grant loans/overdrafts abroad to NRIs through their overseas branches and correspondents against collateral of the shares/debentures of Indian companies held by them, provided the concerned shares/debentures were acquired on repatriation basis.

  • Off market transfers between NRI accounts are not allowed under PIS.
  • NRI can receive shares as gift from his close relative(relative” as defined under Section 6 of the Companies Act, 1956). A proper gift deed needs to be executed for this transfer. Also it has to be submitted to bank along with declaration of particulars of shares. Transfer of shares from NRI to resident Indian is not allowed.
  • Shares transfer from NRE to NRO demat account or NRO to NRE demat account is not allowed under PIS.

( Kindly refer master circular of foreign investments on RBI for more details regarding shares transfer.)

No. One can sell shares only those shares through PIS which are bought through PIS.

No. In case of NRIs all trades need to be settled on bill to bill basis.

Money can be transferred from NRE to NRO account, however, vice versa funds transfer is not allowed.

No. Mutual funds and IPOs can be applied through Non PIS Account.

Yes, he can close his NRI account and open new resident trading and demat account with us by submitting the required proofs of residential status and can get shares transferred from NR demat account to resident demat account.

As per section 6(5) of FEMA, NRI can continue to hold the securities, which he/she had purchased as a resident Indian, even after he/she has become a non-resident Indian, on a non-repatriable basis.

Conversion procedure would be as follows:

  • Please close your resident trading account with the help of the Sharekhan Account Closure form. Don’t mention Demat Account if it has any holdings.
  • Submit NRI Account Opening Form along with all due documents for opening your NRO account.
  • Once the NRI Trading Account and Demat Account are opened, submit the Closure cum Transfer form and get your shares transferred from Resident Demat Account to NRO Demat account.
  • Please note that all existing holdings need to be updated with the Bank in the specified format for TDS calculation for future sale.
  • You can mark an email to nridesk@sharekhan.com for relevant forms and other details in this regard.

As per regulatory guidelines, Tax (if applicable) has to be deducted at source (TDS) for all the profits made in the equity ,ETF & Derivative market transactions.

Tax deduction at source rate is different as per the tenure of the investment. It can be classified into

  • Short-term capital gain - If the period of holding is less than 1 year  the TDS rate would be 15.54% for the current Financial Year
  • Long-term capital gain - If the period of holding is more than 1 year  the TDS rate would be  NIL. 

TDS CHARGES

NET GAINEQUITY SHARES  
  Listed on recog exch with STT (paid on acquistion and transfer) Without STT (STT not paid either on acquistion or at the time of transfer)
Listed on Recog. Exch. (sold off market) Unlisted
LONG TERM (9)      
With Surcharge 11.96% (4)(9)(13)(14) 23.92% (1) (6)(13) (9) 11.96% (1) (6)(13)(9)
With out Surcharge 10.4% (4)(13)(14) 20.8% (1)(6)(13) 10.40%
Period of Holding (5) >365 days >365 days >730days (12)
SHORT TERM(9)      
With Surcharge 17.94%(9)(2)(13) 35.88%(3)(13) 35.88%(3)(13)
With out Surcharge 15.60% 31.20% 31.20%
Period of Holding (5)  

Note - TDS is deducted by Banker. For further clarifications, kindly get in touch with your PIS Bank.