Can I trade indian stock If I am not an Indian and do not reside in Indian? If yes, how?

Question

My Condition:

1) Individual trade

2) Non-Indian

3) Not resident of Indian

Answer 1

yes you can and they are called ADR's. generally, they trade just like other stocks.

Answer 2

As a "Non-Indian", (meaning you are not an NRI or PIO) you cannot directly invest in Indian Stock Markets, through Indian stock brokers.

As a Non-Indian you can /must invest indirectly. There a few ways to do this.

ADR's- American Depository Receipts, on US Stock Exchanges

GDR's- Global Depository Receipts, on European Stock Exchanges

Mutual funds-

About ADR's and GDR's. It is worth noting that these sometimes do not represent the true value of the Indian stock for which they are issued. Often, they are for fractional shares. This is always disclosed in the fine print, which, people do not often read.

Non Resident Indians (often referred to as NRI's), and  Persons of Indian Origin (often referred to as PIO's) can invest directly, subject to RBI (Reserve Bank of India) rules and regulations. As well as SEBI (Securities and Exchange Board of India) rules and regulations. NRI's and PIO's  need the following-

Bank Account

Brokerage Account

Depository Account

Reserve Bank Permission (With or without Repatriation). The difference between these two-

With Repatriation- You can convert and take the money/profits back to your country of residence, in the currency of your resident country. Currently, according to Indian Law, it is illegal to take Indian currency out of India. So the money must be converted to another currency, first. You'll need to fill out an OCB form (Overseas Corporate Bodies). Which will be valid for 5 years, once approved.

Without Repatriation- You fill in the Reserve bank of India paperwork (currently just one form). And it will register the money in your Indian bank account. Essentially keeping the money in India, and also paying your Indian Income Tax.You also need to get a PAN (Permanent Account Number) from the Income Tax Department.

I have included details  for NRI's and PIO's even though you say you are "Non-Indian" for this reason-

I am not sure if by "Non-Indian" you mean that you're ethnic origin is completely Non-Indian. Or if you simply mean that you're ethnic origin is Indian, but that you were not born in India, and do not reside in India... Which would qualify you as a PIO.

One last detail with regard to NRI's and PIO's- They are not allowed to "day trade". That is, to buy and sell a stock on the same day.

Answer 3

Yes, u can do online trading in indian stock market, even if u r not residing in India.

More details can be found here..

http://www.icicibank.com/pfsuser/iciciba...