Are NRIs allowed to participate in equity intraday trading?
No, NRIs are not permitted to engage in equity intraday trading in India as per prevailing regulatory guidelines. Every trade placed by an NRI must be settled on a delivery basis, meaning the investor must own the shares before selling and take delivery when buying.
This restriction is aligned with the rules set under the Foreign Exchange Management Act (FEMA) and the Portfolio Investment Scheme (PIS) framework, ensuring transparency and risk mitigation in capital flows.
Summary of equity trading restrictions for NRIs
| Activity | Permitted? | Notes |
|---|
| Intraday trading | ❌ Not allowed | NRIs must take/give delivery for all trades |
| Short selling | ❌ Not allowed | Selling without owning shares is restricted |
| Delivery-based trading | ✅ Allowed | Only through PIS or Non-PIS accounts depending on repatriability |
| F&O trading | ✅ Allowed (via NRO Non-PIS + CP code) | Requires CP setup through FYERS partner custodian |
What if...
| Scenario | What you should know |
|---|
| You accidentally place an intraday order | The system will reject or auto-convert to delivery, depending on platform safeguards |
| You want to trade frequently | Consider short-term delivery-based strategies within regulatory boundaries |
| You're unsure about trade type | Use the 'Overnight' or 'Delivery' product type on FYERS to ensure compliance |
For NRIs seeking higher trading flexibility, delivery-based strategies combined with F&O via CP route (on NRO accounts) offer broader opportunities while staying fully compliant.
To align your investments with NRI guidelines and explore compliant strategies, submit your details here to open your NRI trading account.
Last updated: 24 Jun 2025
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