Document

Investing in a NRO Account

Modified on: Fri, 15 Jul, 2022 at 4:48 PM

TABLE OF CONTENTS


What are the benefits of opening a NRO account?


Trading in NRO is much simpler than operating a NRE account. Here are some of the benefits.
  • No need to open a PIS Bank account. It saves heavily on PIS transaction charges  
  • Any NRO savings Bank account can be mapped to Trading and demat account and it is not necessary to open  a fresh bank account. 
  • Intraday, BTST trades can be executed only in NRO account.
  • Funding Facility can be availed
  • Leverage benefits are available
  • Collateral based trades are allowed
  • Multiple NRO Bank accounts can be linked to the Trading account
  • Trading in Derivatives (F&O) segment can be done.
  • All stocks can be bought unlike NRE account where there are certain restrictions to buy few shares.
  • Facilitates online fund transfer

How to fund my Trading Account for Investment?


It is simple for NRO accounts. Just log into our trading platform and transfer funds from your registered bank account using our Payment Gateway or via UPI 


Will I get any leverage to trade in NRO account?


The following are the leverage benefits extended to NRO accounts.


  • Maximum 2 times leverage for selective Delivery based trades
  • Maximum 5 times leverage under Intra and Cover Order and
  • Funding Benefit. Click here to read more

What is the difference between NRE and NRO accounts?


Here are the differences in operating a NRE and NRO account



Description

NRE

NRO

Reporting of Transactions

All Equity transactions will be reported to Bank. 

Transactions will not be reported to Bank

Fund Transfer

PIS needs to be funded. Fund transfers are  directly done by the bank based on the contract notes generated

 

Funds can be transferred online by clients using Payment Gateway 

Tax deduction at Source (TDS)

TDS will be deducted by Bank for which they charge

TDS will be deducted by Tradeplus at 0 cost

Eligible Segments

Equity Cash

Equity Cash and Derivatives

Funds

Funds should be available in advance before placing orders

a) Can keep the account funded or

b) Can use stock collateral to buy stocks and pay later

 

Leverage

No leverage will be provided

Leverage will be provided like resident accounts. Read More

Margin Trading Funding (MTF)

No funding can be availed

Funding is available. MTF can be enabled online instantly 

Intra Day Trading

Strictly not allowed

Can trade Intra Day and do BTST (Buy Today Sell Tomorrow)

Repatriation

No limits to repatriate funds

Funds can be repatriated up to $1 million in a year by providing an Auditors certificate for which Tradeplus provides assistance



Can I repatriate funds, if so, how to do it?


Yes, you can repatriate funds from your NRO account. Its not difficult at all. We aim at providing end to end service to you, up to taking back money to the country of your residence.


You may repatriate up to one million dollar in a year by submitting relevant Auditor's Certificate. We can help you in obtaining these forms too through our Auditors, if you want to. The Auditor's certificate along with a Remittance form needs to be sent to your bank to repatriate the required funds. 



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