NRI Investment Guide
IPO Investment for NRIs
Non-Resident Indians (NRIs) can invest in Indian IPOs, but the process differs slightly from resident Indians. NRIs need to have an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) savings account along with a demat account.
Requirements
- ■ NRE/NRO Savings Account with a bank
- ■ NRI Demat Account with a SEBI-registered depository participant
- ■ PAN Card (Permanent Account Number)
- ■ OCI (Overseas Citizen of India) or Indian Passport
- ■ FATCA Declaration
How NRIs Can Apply for IPOs
- Open an NRI demat and trading account with a broker
- Ensure sufficient funds in your NRE/NRO account
- Apply through ASBA (Applications Supported by Blocked Amount) via your bank
- NRIs can also apply through the UPI route if supported by their bank
- Shares will be credited to your NRI demat account upon allotment
Tax Implications
NRIs are subject to TDS (Tax Deducted at Source) on capital gains from IPO investments. Short-term capital gains (held less than 12 months) are taxed at 15%, while long-term capital gains above ₹1 lakh are taxed at 10% without indexation benefit. Consult a tax advisor for your specific situation.