Zerodha, India’s leading discount brokerage, has announced a significant reduction in trading fees for Non-Resident Indian (NRI) investors, alongside a streamlined onboarding process, to encourage greater participation in the Indian stock market. The move, effective immediately, targets NRIs looking to invest in Indian equities but previously deterred by high costs and complex account-opening procedures.
The brokerage has slashed fees for non-Portfolio Investment Scheme (non-PIS) NRI accounts to a flat ₹50 or 0.5% per executed order for equity delivery, whichever is lower, down from the previous ₹100 or 0.5%. For Portfolio Investment Scheme (PIS) accounts, fees remain at ₹200 or 0.5% per executed order. This follows a regulatory shift by the Securities and Exchange Board of India (SEBI), which eliminated the need for a Custodial Participant (CP) code for NRIs trading in the derivatives segment, enabling Zerodha to lower costs.
Nithin Kamath, Zerodha’s founder and CEO, highlighted the potential of the NRI market in a recent post on X, noting that NRI accounts are, on average, ten times larger than resident Indian accounts. “The number of NRIs who want to invest in India but don’t due to the complex account opening process is quite high,” Kamath stated. He emphasized that the fee reduction and simplified onboarding align with SEBI’s recent reforms, making it easier for NRIs to access India’s growing financial markets.
The new onboarding process reduces paperwork and eliminates the need for embassy visits in many cases, addressing longstanding complaints about the cumbersome process for NRIs. Previously, NRIs faced challenges like obtaining a PIS permission letter from the Reserve Bank of India (RBI) through partner banks (HDFC, Axis, IDFC First, or Yes Bank) for NRE accounts, or navigating notarized document submissions from abroad. The non-PIS route, which uses NRO bank accounts, now offers a hassle-free alternative with fewer restrictions and lower costs.
Zerodha’s NRI accounts allow investment in equities, mutual funds, and derivatives through platforms like Kite and Coin, offering the same tools available to resident Indians. The brokerage charges ₹500 for account opening and an annual maintenance charge of ₹500 plus 18% GST. However, NRIs from the USA and Canada face restrictions on mutual fund investments due to compliance issues, and intraday equity trading remains unavailable.
This strategic move comes as India’s stock market continues to attract global attention, with the Sensex and Nifty posting robust growth. Zerodha’s efforts to tap into the NRI investor base, estimated to be significantly underserved, could reshape the landscape for diaspora investments. Industry experts see this as a response to growing demand from NRIs, particularly in the US, UAE, and Canada, who seek to capitalize on India’s economic rise.
For more details on Zerodha’s NRI services, visit their official website or contact their dedicated NRI support team at 080 4680 5727.
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