NRI Trading

What are the documents required to open NRI Repatriation Benefit (NRE) account with ProStocks?

What are the documents required to open NRI Non Repatriation Benefit (NRO) account with ProStocks?

The following are the online and offline account opening charges for NRE and NRO Trading and Demat Account of NRI with ProStocks:

For Equity Intraday Trades:

Equity Intraday Trading is now available to all NRI customers through NRO NON-PIS account. This segment is by default activated for all NRI customers.

• Brokerage: Flat Rs 100 per executed order
• Demat Charges: Nil
• Withholding Tax: 30% plus surcharge (effective rate 31.2%)

Key points to note

• Equity intraday trades are only available through NRO NON-PIS Account. It's not available through NRE PIS Account.
• No activation needed for equity intraday trades.

For Equity Delivery Trades:

Your account opening is Free.   Your Trading and Demat Account is lifetime AMC Free.

ProStocks will open your NRE and NRO Trading and Demat Account for free. Your Trading and Demat Account will also be lifetime AMC (Annual maintenance charge) free. We collect Rs 1000 refundable deposit towards Demat Account.

For Equity Futures and Options Trades:

Your account opening is Free.   Your Trading and Demat Account is lifetime AMC Free.

ProStocks will open your NRO Trading and Demat Account for Free. Your Trading and Demat Account will also be lifetime AMC (Annual maintenance charge) Free. We collect Rs 1000 refundable deposit towards Demat Account.

You are no longer required to open custody account with ISSL or anyone when you do equity derivatives trades with ProStocks. You will save a significant amount, which you were required to pay to Custodian. ProStocks will take your CP code from the exchange which will allow you to trade equity derivatives at NSE as well as BSE.

Annual Maintenance Charges (AMC) for a trading account with ProStocks is Nil (Zero).

The Demat Account for NRIs is lifetime free (no AMC) with Rs 1000 refundable one time deposit.

ProStocks is now Clearing Member for Equity Futures and Options.

You are no longer required to open custodian account with ISSL or anyone when you do equity derivatives trades with ProStocks. You will save a significant amount, which you were required to pay to Custodian.

ProStocks will take your CP code from the exchange which will allow you to trade equity derivatives at NSE as well as BSE.

For NRE Equity Delivery Trades:

ProStocks supports the following four Banks For NRE Trading and Demat Account : (in alphabetical order)

1. Axis Bank
2. HDFC Bank
3. IndusInd Bank
4. Yes Bank

Most Stock Brokers in India do not support more than two Banks. ProStocks will open your Trading and Demat Account. ProStocks can help you to open your Bank Account. ProStocks banking partner will take care of picking up the courier, wherever you are in the world

For NRO Equity Intraday, Delivery and NRO Equity Futures and Options Trade:

NRI need NRO Saving bank account to trade in Equity Intraday, Equity Delivery and Equity Futures and Options.

ProStocks allow NRO Saving Bank Account of any Bank (Yes, any Bank in India) for Equity Intraday, Equity Delivery and Equity Futures and Options Trades. Custodian account is not required for trading in Equity Futures and Options, when you trade with ProStocks. NRO PIS Bank account is neither required for Equity Intraday and Delivery trades nor for Equity Futures and Options trade. ProStocks is Clearing Member and can clear trades for NRO Equity Futures and Options Trade in NSE and BSE. ProStocks is currently waved off whole clearing fees for NRO Equity Futures and Options Trade.

NRE or NRO or Both Account with ProStocks

ProStocks is Stock Broker, Depository Participant and Clearing Member for NRI Equity Futures and Options Trades. ProStocks will open your Trading as well as Demat Account. ProStocks can also get you CP Code required for trading in Equity Futures and Options.

Non-Resident Indian (NRI) Trading Account with repatriation benefit is called Non-Resident External (NRE) Trading Account and is required to buy and sell shares, securities, bonds, exchange-traded funds, mutual funds etc.

Non-Resident Indian (NRI) Trading Account without repatriation benefit is called Non-Resident ordinary (NRO)Trading Account and is required to buy and sell shares, securities, bonds, exchange-traded funds, mutual funds etc. and trade in Equity Futures and Options.

Non-Resident Indian (NRI) Demat (Depository Beneficiary) Account with repatriation benefit is called Non-Resident External (NRE) Demat Account and is required to electronically hold (in dematerialized format) shares, securities, bonds, exchange-traded funds, mutual funds etc.

Non-Resident Indian (NRI) Demat (Depository Beneficiary) Account without repatriation benefit is called Non-Resident ordinary (NRO) Demat Account and is required to electronically hold (in dematerialized format) shares, securities, bonds, exchange-traded funds, mutual funds etc.

NRI can open NRE Trading and Demat Account or NRO Trading and Demat Account or both, NRE as well as NRO Account.

Benefits of NRO Non PIS Account compared to NRO PIS Account

NRE Trading and Demat Account :

You need to keep balance in your NRE PIS Bank Account (do not transfer to ProStocks) for buying Limits/exposure/margin/balance, whatever name called for buying shares through your trading account with ProStocks.

ProStocks will update your trading account based on balance received from your Bank for Limits/exposure/margin/ balance, whatever name called, for buying shares through your trading account.

Please note that we receive only one file from your PIS Banker in the morning session. Hence any transfers you make to your PIS account during the day may not be captured in your banker's file sent to us and hence may not be updated in our RMS for margins. So kindly ensure that your PIS account is sufficiently funded the previous day itself.

Once you buy, ProStocks will submit one copy of your Buy Contract Note to your Bank. Your Banker will debit your NRE PIS Bank Account and credit to ProStocks bank account. Similarly, when you sell the shares, ProStocks will submit one copy of your Sell Contract Note to your Bank. Your Banker will debit ProStocks's bank account and credit your NRE PIS Bank Account, whichever may be the case minus tax liability if any.

RBI reporting is not required for NRO Invest bank Account after February 2016 but compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to withholding tax (TDS) is required.

NRO Trading and Demat Account for Equity Intraday, Equity Delivery as well as Equity Futures and Options:

For Pay-in to your trading account - Funds Transfer from Client Bank Account to your trading account with ProStocks can be done via two ways:

1. Login to Trading Application and go to menu Funds Management then go to option funds pay-in, this option will allow you to transfer funds in 3 seconds from your bank account to ProStocks (Sunlight Broking LLP) bank account and limits will get updated in your trading account immediately.
2. NEFT/RTGS/IMPS from your Bank Account to Sunlight Broking LLP where in Sunlight Broking LLP Bank Account number column you will write SUNLIGHT plus your Trading Account Number with us without any space . Assuming your 5 digit Alpha Number code with us is “X0011”, you will fill the information in the following manner :

Account Name	SUNLIGHT BROKING LLP
Account Number	SUNLIGHTX00111
Bank/Branch	HDFC BANK, FORT, MUMBAI
Account Type	Current Account
IFSC Code	HDFC0000060



3. HDFC Bank to HDFC Bank fund Transfer using Virtual Account Number: Fund Transfer from your HDFC Bank Account to Sunlight Broking LLP where in Sunlight Broking LLP Bank Account number column you will write SUNLIGHT plus your Trading Account Number with us without any space . Assuming your 5 digit Alpha Number code with us is “X0011”, you will fill the information in the following manner
• Login to your HDFC Bank Internet Banking and Go to Fund Transfer Menu and click on Transfer to eCMS Account (Virtual Account) as shown given in below given picture.



• Click on Add payee as shown in the below given picture



• You will get the below given screen for adding your personalized Virtual Account Number of ProStocks.



Fill the following information in the above given screen

Beneficiary Account Number	SUNLIGHTX0011 (Assuming your 5 digit Alpha Number code with us is "X0011" , replace X0011 with your actual Trading Code)
Beneficiary Name	SUNLIGHT BROKING LLP

and press Add button.

You would have come to know the answer to the following question:

How would I transfer money to NRI trading account?

How would I transfer money for NRO Trading?

How would I transfer money for NRE Trading?

How can you transfer funds to NRI trading account?

How can you transfer funds for NRE Trading?

How can you transfer funds for NRO Trading?

As per RBI regulations, NRI's are required to settle their purchase and sale transactions in exact rupee amount. Hence no leverage can be provided for trading to NRI's in equity cash. 

Portfolio Investment Scheme PIS is the scheme of RBI through which NRIs and PIOs can purchase and sell shares and convertible debentures of Indian companies on a recognized stock exchange in India by routing all their transactions through a designated bank branch on repatriation benefit basis.

There are few branches of some Banks that are designated by RBI that a NRI can have account with in order to invest in Indian Share Market on repatriation benefit basis. NRI investing through NRO Account are not required PIS Account. Any existing NRO PIS Account will be converted to NRO Saving Bank Account post amendment in FEMA in Feb 2016.

PIS stand for Portfolio Investment Scheme. Any NRI or PIO holder wishing to invest in Indian Share Market on repatriation benefit basis must have PIS Bank Account with one designated Bank in India and PIS Trading Account with SEBI registered Stock Broker in India. It is meant for investing in Indian Share Market for delivery based buy and sell transaction.

Each NRI can purchase  maximum of 5% equity shares of listed company subject to overall limit for listed equity shares of each company on repatriation benefit basis. NRI investment in equity shares of listed company without repatriation benefit is treated at par with resident Indian and there is no upper limit. Please refer the recent amendment in FEMA on RBI website at following link Foreign Exchange Management Act Notification and Foreign Exchange Management Act Notification in PDF

Please register yourself on https://digitalkyc.prostocks.com/ on left hand side. Please fill your name, email id and International Area Code and Mobile Number, You don’t have to include + Sign in ISD field, select status as Non Resident and press Generate OTP. For NRI's, OTP will be generated and sent to email id with subject “ProStocks Registration OTP”.

Insert your OTP and validate, after validation you will be taken to next page. On this page your need to submit your PAN Number, Name as PAN Card, Date Of Birth, Country of Birth and Type of account you wish to open, Aadhar Card is an optional field.

As soon as your OTP get validated you will receive email stating that your login id and your password and whenever you login again, you need to use right hand side login as you are already registered.

NRO Trading Account for Equity Futures and Options (derivatives) Trades :

NRIs are allowed to invest in futures & options segment of the exchange out of Rupee funds held in India on non-repatriation basis, subject to the limits prescribed by SEBI.

ProStocks will open your NRO Trading Account for Equity Future and Options.

ProStocks will map NRO Saving Bank Account with your NRO Trading Account. You can have multiple NRO Saving Bank Account with same Bank or multiple Banks and all can be mapped to your Trading Account for transferring funds to ProStocks. You can have NRO Savings bank Account in any Bank of your choice and there are no restrictions on the number of Bank-supported. You will operate your NRO Saving Bank Account for equity derivatives trades similar to Resident Indian. You can transfer funds to us any time, you can withdraw your funds from ProStocks any time with just one exception, compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to withholding tax (TDS). ProStocks will do compliance of Section 195 of Indian Income Tax Act, 1965 for a fixed fee of Rs 12k per annum and would be able to trade in equity futures and options just like Resident Indian. No Custody Account, No hassle of dealing with Custodian as well as Stock Broker.

You are no longer required to open custody account with ISSL or anyone when you do equity derivatives trades through ProStocks. Since you are not required to open Custody Account, you will save a significant amount, which was otherwise, you were required to pay to Custodian. ProStocks will take your CP code from the exchange which will allow you to trade equity derivatives at NSE as well as BSE.

NRO Account with Bank of NRI for Equity Delivery Trades :

You will also need to open one more NRO Saving Bank Account, which is now called NRO Invest Account (similar account was earlier called NRO PIS Bank Account). ProStocks can assist you in opening your Bank Account.

ProStocks will map NRO Invest Bank Account (earlier NRO PIS Bank Account) with your NRO Trading Account and NRO Saving Bank Account with your NRO Demat Account.

Dividend will be credited to your NRO Savings Bank Account by the respective companies whose shares are held in your NRO Demat account on record date for dividend.

You need to keep balance in your NRO Invest Bank Account (do not transfer to ProStocks) for buying. Your NRO Invest banker will inform us balance of your NRO Invest Bank Account and ProStocks will provide you buy limit based on balance reported by your Bank. Once you buy, ProStocks will submit one copy of your Buy Contract Note to your Bank. Your NRO Invest Banker will debit your NRO Invest Bank Account and credit ProStocks bank account. Similarly, when you sell the shares, ProStocks will submit one copy of your Sell Contract Note to your NRO Invest Bank. Your NRO Invest Banker will debit ProStocks bank account and credit your PIS bank account minus tax liability if any. RBI reporting is not required for NRO Invest bank Account after February, 2016 however compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to with-holding tax (TDS) is required.

FEMA has been amended however Section 195 of Income Tax Act has not been amended and it requires deduction and deposit of withholding tax. Traditionally, banks through NRO PIS Bank Account were computing, deducting and depositing withholding tax liability.

Majority of the PIS Banker does not want to lose PIS Account Charges revenue and also as solution to above problem of deduction and deposit of withholding tax, has agreed to continue to provide the same service at same cost in NRO Saving Account.

Your banker will generate Internal Reference Number (similar to erstwhile PIS number received from RBI) and insert in the software so your NRO Saving Bank Account will behave as if this is NRO PIS Account.

Now ProStocks offer NRO NON-PIS Trading and Demat Account and your account will be subject to withholding tax requirement

Rate of TDS for Non Resident.

I am a NRI. How can my Investment in India be tax free?

ProStocks Now offer NRO Trading and Demat Account without NRO PIS Bank Account i.e NRO Non-PIS Trading and Demat Account. This account can be used for Equity Delivery, Equity Intraday as well as Equity Futures and Options (FNO). In FNO not only you are allowed short-sale but intra-day trades also. You can have NRO Savings Bank Account in any Bank in India, yes in any of the more than 122 Banks in India. There is no linking required as this is NRO Non-PIS Trading and Demat Account.

You are not required to sell your holdings when your status changes from non-resident to resident or from resident to non-resident.

You just need to change the status of your Demat Account.

The Following modification is permitted in your existing Demat account :

NRIs can purchase shares or convertible debenture of an Indian Company, invest in Exchange Traded Funds (ETFs) and trade in Futures & Options Segment.

As per the recent circular by RBI, NRIs are now permitted to have access to Exchange Traded Currency Derivatives (ETCD) market in India.

Note: Intra-day trading in cash segment is now allowed to NRIs.

"Detailed guidelines and procedure to hedge currency risk through exchange traded currency derivatives is awaited  from BSE and NSE, post amendment in FEMA."

As per the recent circular by RBI Non Resident Indians (NRIs) are now permitted to have access to Exchange Traded Currency Derivatives (ETCD) market in India.

As of now, NRIs are permitted to hedge their Rupee currency risk through OTC transactions with (Authorized Dealer) AD banks. With a view to enable additional hedging products for NRIs to hedge their investments in India, it has been decided to allow them access to the exchange traded currency derivatives market to hedge the currency risk arising out of their investments in India.

NRIs may take positions in the currency futures/exchange traded options market to hedge the currency risk on the market value of their permissible (under FEMA, 1999) Rupee investments in debt and equity and dividend due and balances held in NRE accounts.

"Detailed guidelines and procedure to hedge currency risk through exchange traded currency derivatives is awaited from BSE and NSE, post amendment in FEMA."

Can I open NRO Non-PIS Trading and Demat Account?