Before going through the below reading, Please go through the chart below and answer to this question - "Will you look like to be in the Market which has provided 34.12% Returns on the Broad Based Index with such a fantastic Trend." Pretty Much answer is Yes. Now the question is How? Recently, There is great article written on this topic by Zerodha Team on this link by Mr. Venu. Thank you so much for putting in the article. " Dear fellow NRI Investor/Trader, Here is our effort to simplify what goes into opening an NRI trading and demat account for investing in the Indian Stock Exchanges. Open an NRE/NRO savings bank account in India NRE Account? Non-resident External Account (NRE) is a bank account where both the principal and the interest earned can be repatriated. You can transfer dollars from your foreign bank account which gets converted to rupees when it hits your NRE account. Funds kept in the NRE account can be converted back into dollars and can be transferred back to your foreign account along with the interest earned. This ability of an asset to be moved from a foreign country to the investor’s home country is called repatriability. NRO Account? Non-resident Ordinary Account (NRO) is a bank account where principal and interest only upto $1million per year can be repatriated. Check this link to know more. Get an RBI approval to start investing on the stock exchanges (PIS) You need to get a PIS (Portfolio Investment Scheme) permission letter from RBI (Reserve Bank of India) before you can open a trading or demat account with a brokerage in India. How to get the PIS letter? The bank where you opened the NRE/NRO account will take care of this. Make sure to submit all the requisite documents. Open a Trading and Demat account You can now open a trading and demat account with a brokerage firm (like Zerodha). Along with all the other documents, you have to also give a copy of the PIS letter that the bank would have given you. Note that you can open both NRE and NRO bank account simultaneously with a bank. In this case, you have to specify which one of these two you want to be mapped to your trading account. You can map only one of these accounts to your trading account.By mapping your NRE account, you can only trade in the Equity segment whereas through an NRO account, you could trade in both Equity & Derivative segment. If you wish to map both these accounts for the sake of Equity trading, you’ll have to obtain 2 client codes from your brokerage firm. Documents required to open a trading and demat account Copy of PIS permission letter Copy of FEMA declaration Copy of PAN card Overseas address proof – Copy of Driving License/Foreign Passport/Utility Bills/Bank Statement (not more than 2 months)/Notarized copy of rent agreement/Leave & License agreement/ Sale Deed Passport size photograph In case of an Indian Passport: Copy of valid passport with place of birth as India, Copy of Valid Visa. In case of Foreign Passport: Copy of Valid passport, Copy of PIO/OCI card. Proof of Bank account (a cancelled cheque leaf of your NRE or NRO savings bank account) Note: Copy of PAN card, Passport, and Foreign address proof to be notarized by Indian Embassy Trading Process Allocate funds from your NRE/NRO bank account to your PIS. The bank now informs the brokerage firm on how much funds you have allocated. This is then updated on your trading account. When you make a stock purchase, the brokerage firm sends the buy contract note at the end of the day to the bank. The bank in turn debits your PIS account to that extent and credits the brokerage firm. Similarly when you sell some stocks from your demat, the brokerage firm sends a sell contract note at the end of the day to the bank and also credits your PIS bank account with the proceeds from the sale. Note that two separate contract notes are sent for all your buy transactions and sell contractions at the end of every day. The net amount credited/debited to your PIS will be including all charges that appear on the contract note. Taxation Financial year ending in India: March 31st Last date for filing IT returns: July 31st Long term capital gains: Zero or exempt. Any gain made on stocks held for more than 1 year is exempt from any taxes. Short term capital gains: 15% on any gain made on stocks sold before 1 year. Trading income from F&O: Considered as business income, and taxed according to the Income tax (IT) slabs in India. Trading on Futures and Options? Yes you can trade in F&O segment of the exchange out of the rupee funds held in India on a non-repatriate basis. It is a little complex to get started as trading on F&O requires a NRI to get a Custodial Participant (CP) code. We at Zerodha have tied up with IL&FS for custodial business, and hence this CP code is assigned by IL&FS. Once you have the CP code, all the funds for trading F&O will sit with the custodian, similar to how all your funds for trading stocks sit with your bank. A typical starting portfolio size for a custodial account is Rs 25lks. Other things to keep in mind Stock holding of an NRI can’t exceed 10% in any Indian listed company. NRI can trade only delivery based. No intraday trading on equity/stocks allowed. NRI can trade only equity and equity F&O. No currency or commodity trading allowed." There are lot many Brokers who provide the good services. If you need any review on Brokers or Trading Services then do let me know.