uTrade AlgosWhile there isn’t a list of specific stocks restricted for NRIs, there are significant restrictions on how NRIs can trade, which effectively limits their access to certain trading strategies and, indirectly, certain stock-related activities. Here’s a summary focused on the restrictions that impact stock access:
1. Intraday Equity Trading is Not Allowed: This restriction significantly limits short-term trading strategies, impacting the ability to capitalise on daily stock price fluctuations.
2. Buy Today Sell Tomorrow (BTST) is Not Available for NRE-PIS (Non-Resident External-Portfolio Investment Scheme) Accounts: This further limits short-term trading flexibility for NRE-PIS account holders.
3. F&O (Futures and Options) Restrictions:
- While F&O trading is possible via NRO (Non-Resident Ordinary) accounts with a CP (Custodial Participant) code, NRIs cannot pledge securities as collateral. This can limit access to larger positions or complex trading strategies.
- Currently, with Orbis as the custodian, BSE Futures and Options (BFO) segment trading is not allowed.
- If an NRE account is mapped, only equity trading would be allowed. If an NRO account is mapped, either equity delivery or F&O would be allowed, not both.
4. Sovereign Gold Bonds (SGBs) cannot be bought: This restricts access to a specific type of investment.
5. Mutual Fund Restrictions:
- NRIs from the USA and Canada are specifically restricted from investing in mutual funds.
In essence:
- NRIs are restricted in their ability to engage in short-term trading strategies.
- F&O trading is possible but has limitations related to collateral and specific exchanges.
- Mutual fund access is restricted for some NRIs.
- SGB access is restricted.
Therefore, while no specific list of restricted stocks is provided, the numerous trading restrictions effectively limit the ability of NRIs to fully participate in the Indian stock market.
For more details on how to open an NRI account, click here!