What Are the Trading Restrictions for NRI in Zerodha?

Last Updated: Mar 20, 2024 Value Broking 2 Mins 1.4K

The following are NRI trading restrictions:

  • NRIs are able to trade F&O and invest in stock delivery. On the other hand, a Custodian Participant (CP) code and the appointment of a custodian are necessary for trading in F&O. Orbis and Zerodha have teamed to offer custodial services. Customers having CP codes are now unable to trade in the BSE Futures and Options (BFO) segment.
  • Mutual fund investments are not permitted for NRIs from the USA or Canada. If an NRI from another nation has a NON-PIS account, they are eligible to invest. Intraday trading is prohibited. 
  • There is no option for Buy Today Sell Tomorrow (BTST).
  • SGBs, or Sovereign Gold Bonds, are not tradable. Existing units, however, may be held or sold until maturity.
  • If the client possesses a CP code, they are eligible to trade F&O intraday.
  • It is not permitted to trade in the commodities and currency segments.
  • Equity trading would be the sole activity permitted if an NRE account was mapped.
  • The mapping of an NRO account would permit F&O or equity distribution.
  • Securities cannot be pledged by NRIs as collateral for F&O trades.

Imp note: The Zerodha account can be connected to both an NRE and an NRO account. To map both accounts, submit two applications for account opening.