How to create a trading account for NRI

#1
I am an NRI currently working and staying in USA. I've been trading in stocks, options and more recently in commodity and Single stock futures in the US.

My first reaction to this website (www.traderji.com) was surprise, as I was not aware that structured countrywide trading in derivatives has come up to speed yet in India. It might actually not have, but its good to see discussion boards and forums like this.

As an NRI, do I have any options (I mean choices :)) to participate in the stock/option/future markets in India? As far as I remember, in India we have a system of keeping the brokerage separate from the repository of the equities and other securities (unlike in the US where the brokerage itself is the custodian of the securities) so I guess I need to create 2 different accounts -- one with a bank or organization to act as my security repository and other with a brokerage to trade as per my requests?

Please suggest which are the good alternatives for NRIs to do both these things through electronic means (internet and telephone when clarification is required). Any one who has a practical experience trying to electronically trade derivatives in India -- I'd appreciate their replies and comments..

Thanks a lot,

Ramarao
 

nareshch

Active Member
#3
arun said:
Hello Ramarao,

Welcome to Traderji.com

I would recommend a 3in1 online account(savings bank account+shares holding demat account + trading account) with www.icicidirect.com

You can read more at http://content.icicidirect.com/product_nri.asp
I dont think NRIs can invest directly in markets in India .Even the above link states the same .

Note : - This is by way of intimation of the availability of the ICICI Direct service and does not constitute on offer to buy or sell or a solicitation in this regard made to any person. This service is not available to foreign residents including Non-Resident Indians (NRIs) in United States. It is available only to NRIs residing in jurisdictions permitting investment in and trading of Indian securities on Indian stock exchanges.

and from Indiabulls site
"This service is presently being offered to Non-Resident Indians (NRI) residing in Gulf Co-operation Council (GCC) include Arab Emirates, Saudi Arabia, Bahrain, Kuwait, Oman, Jordan, Iran, Iraq, Syria, Lebanon, Egypt, Sudan and Qatar. This service is not available to foreign residents including Non-Resident Indians ("NRI") in other jurisdictions. "

As per my understanding , NRIs other than the above mentioned countries are not allowed to participate in Indian stock Markets Directly .They can opt for Mutual funds Instead .I guess there will be many more rules for investing in MFs also

Naresh
 

sh50

Active Member
#5
I am surprised that ICICI has been recommended considering the fact that in many other forums there are SOS posts yelling for help on account of being ICICI customers. Their terminial is useless for day trading at least; that much I know. They have been my bankers for six months now but considering their infrastructure it should be reneamed - I see I see I - the last I standing for ineffieiciency. Everybody has thier experience and its nice to come across a contrarian view by Arun. Hope it proves to be true for me too.
 
#6
Dear Friends
Heartiest Greetings. I am icicidirect user for close to a year and half and have similar disappointing views regarding there service.

1. There site is very slow, I am unable to do any transaction for days.
2. Sometimes it takes so much time, that by the time it opens the page – session is expired. So the sites asks me to provide username/password – forcing me do things from scratch again.
3. I am unable to see the chart.
4. Reaching to customer support takes a lot of time – so many menus, no dedicated option for icicidirect customers in the start.
5. Customer wait time is needlessly long – I have paid for the services not to wait endlessly.
6. Solutions provided by the customer support executive are most of the times useless. All the efforts are made to say “opening scripts ” and “closing scripts” – like thanks for calling icici – giving little heed to cusotomers genuine problem.

Happy networking!

wishes
jitin
 
#7
Dear Mr. Rao
Trading for NRI,s from USA is not permitted on the Indian Stock exchange.
Also please do not recommend [I see I see I] to any of your friends as some one said on Traderji " it is only available when it is not required.".The site is slow and being an NRI from Oman what I have noticed is the customer is forgotton once they have lapped up the money.I am planning to open a new
account
 
#8
Dear Friends
Heartiest Greetings. I am icicidirect user for close to a year and half and have similar disappointing views regarding there service.

1. There site is very slow, I am unable to do any transaction for days.
2. Sometimes it takes so much time, that by the time it opens the page session is expired. So the sites asks me to provide username/password forcing me do things from scratch again.
3. I am unable to see the chart.
4. Reaching to customer support takes a lot of time so many menus, no dedicated option for icicidirect customers in the start.
5. Customer wait time is needlessly long I have paid for the services not to wait endlessly.
6. Solutions provided by the customer support executive are most of the times useless. All the efforts are made to say opening scripts and closing scripts like thanks for calling icici giving little heed to cusotomers genuine problem.

Happy networking!

wishes
jitin



I gave one sell order at icicidirect at 10.00 AM, I had to modify it 10 times between 10 AM to 11 AM because even after 5 minutes of placing order they will not send the order to the exchange and by the time the rate will change. Finally after one hour I could sell the stock at Rs.1.50 per share less than what I ordered originally.
ICICIDirect.com = HELL
Thats the rating for icicidirect.
 
#9
Hello,

There is lots of confusion in whether NRI in US can participate in Indian stock trading or not? All online stock trading site e.g., ICICIdirect, Citibank etc do not permit any NRI living in US to open any online a/c. The reason is as per Securities exchange Commission of US any broker who is not registered with SEC can not solicit to any US resident. However, any US resident can solicit to any non-registered broker for stock trade. But this rule is not very clear and that is why ICICIdirect, CITIBANK, IDBI etc. don't allow NRI of US at all to open a/c. In 1989 SBI and Citibank had enough problems while selling Resurgent India Bond to US NRIs. However, I m also like to know more details about this topic. If any one can shed some light it would be quite helpful.

Thanks
 

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