Introduction
An NRI can invest in the Indian capital market by
buying in the secondary market or by subscribing to
public offers by corporates.
 
 
 

Secondary Market Operations
  • A permit is required to be obtained from the RBI before trading under PIS can
    commence. The permit can easily be obtained through a designated branch of a bank where the NRI investor should have an account.

  • Investments can be done either on repatriable basis or on non-repatriable
    basis or both. In either case RBI permit is mandatory and separate permits
    are required for repatriable and non-repatriable investments.

  • Shares can be bought and sold only on delivery basis. Intra-day squaring off 
    is not permitted.

  • Applicable tax on profits made will be deducted at source. For details please refer to the section on Taxation.

NRIs can invest in the secondary
market only under the Portfolio
Investment Scheme (PIS) as
formulated by the Reserve Bank
of India. The salient features of
the scheme are: