Are NRIs permitted to trade in the commodity segment?
Currently, Non-Resident Indians (NRIs) are not permitted to participate in the commodity trading segment in India. This restriction is enforced by Indian regulatory authorities to ensure adherence to the Foreign Exchange Management Act (FEMA) and other applicable capital market regulations.
Key reasons for the restriction
- Regulatory framework: Commodity markets in India are regulated separately from equity and derivatives markets, and NRIs are excluded from participation as per the current guidelines.
- FEMA compliance: Participation in commodity derivatives may involve leveraged exposure and cross-border fund flows, which fall outside FEMA’s permissible limits for NRIs.
What if...
| Scenario | What you should know |
|---|
| You are an NRI looking to diversify | Consider investing in Equity Delivery and F&O via an NRO Non-PIS account instead |
| You were previously a resident trader in commodities | You must close all positions and accounts in the commodity segment before updating your status to NRI |
| You come across brokers allowing commodity access | Such arrangements may not be compliant; verify with SEBI and FEMA guidelines before proceeding |
NRIs looking to invest in commodities can explore global commodity ETFs or mutual funds through international investment channels, subject to their country’s regulations.
Last updated: 25 Jun 2025
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