Answer Book question

Can an NRI buy Indian stocks?

Yes, through the Portfolio Investment Scheme route: a designated bank account (NRE or NRO PIS), a demat account, and a broker that handles NRI clients. There are limits on holdings per company and some restrictions on intraday trading. Paperwork is heavier than for residents; once set up it works.

By Kerala Rising · ·

Short answer

Yes, through the Portfolio Investment Scheme route: a designated bank account (NRE or NRO PIS), a demat account, and a broker that handles NRI clients. There are limits on holdings per company and some restrictions on intraday trading. Paperwork is heavier than for residents; once set up it works.

Real life

A Gulf engineer opens an NRE PIS account, demat and broker account over six weeks of documentation, then invests monthly in ETFs.

What this means

PIS lets RBI track NRI holdings within sectoral limits. Delivery-based investing is allowed; speculative trading generally is not.

What to check

PIS account at a designated bank NRI demat and trading account Holding limits TDS and treaty

What people often miss

Using a resident demat account after becoming NRI.

The Kerala / NRI angle

For most NRI households, index funds via SIP are simpler than direct stocks; PIS is for those who want direct holdings.

An example

Setup 6 weeks; thereafter monthly ETF purchases.

When this may not be the right answer

If you only want index exposure, skip PIS and use index funds.

What to do next

Decide funds vs. stocks If stocks, open PIS and NRI demat

Related questions

Can an NRI invest in Indian mutual funds? What is an ETF?

Related Kerala Rising help

NRIs & returning Malayalis

Sources and what to verify

RBI FEMA regulations on NRE/NRO/RFC accounts · Income Tax Act residency provisions · SEBI/AMFI rules on NRI investment · NORKA Roots schemes · Kerala Rising is not a tax adviser; residency and tax questions need a CA Rates, limits and whether you may qualify change. Confirm with the official source. Ask Kerala Rising: Tell us your return date, which accounts you hold, and whether you still earn abroad. We will give you the housekeeping list and flag what needs a CA. WhatsApp +1 443 595 9000 · keralarising.com Kerala Rising › NRI · NRI 10

Before you act

This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, or professional advice. Rules, rates, benefits, and claim or application decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.