Nri Mutual Fund Investment: Can Nris Use Coin?

Non-resident Indians (NRIs) cannot currently invest in mutual funds through Zerodha Coin due to compliance and regulation issues. However, according to one source, NRIs with a Non-PIS account can invest in mutual funds through Zerodha, while those with a PIS account cannot.

Zerodha Coin is not available for NRIs

Zerodha is a trusted platform with over 1.3 crore customers who hold over ₹3.5 lakh crores worth of investments. Its mission is to help Indians do better with their money. Zerodha Coin is India's largest zero-commission direct mutual funds platform, which has helped Indians invest over Rs 70,000 crores.

However, Zerodha Coin is not available for NRIs. While Zerodha is a great platform for Indians to invest their money, it does not extend its services to Non-Resident Indians. This means that NRIs cannot use Zerodha Coin to invest in mutual funds.

There are a few reasons why Zerodha Coin might not be available to NRIs. One reason could be regulatory restrictions. India has specific regulations regarding investments by NRIs, and these regulations might prevent Zerodha from offering its services to this group. Another reason could be that Zerodha is focusing its efforts on the domestic market, as it is one of the largest platforms in India.

This restriction on Zerodha Coin for NRIs might be an inconvenience for those living abroad who wish to invest in Indian mutual funds. However, there are alternative platforms that NRIs can use to invest in mutual funds. Some of these platforms include Angel One, ProStocks, Paytm Money, TradeSmart, and SAS Online, among others. These platforms offer similar services to Zerodha Coin and are available to NRIs.

While it is unfortunate that Zerodha Coin is not available to NRIs, there are alternative platforms that can be used to invest in mutual funds. It is important to research and compare these platforms to find the one that best suits your needs and investment goals.

NRI-PIS account holders cannot invest through Zerodha Coin

Non-Resident Indians (NRIs) can invest in mutual funds through Zerodha Coin, but only if they have an NRI account with Zerodha. To open an NRI account, NRIs and Persons of Indian Origin (PIO) must ensure their residential status is marked as Non-resident on the ITD website. If the Know Your Customer (KYC) status is Non-resident, there is no need to notarize the documents. If not, the documents must be notarised by an official body, such as the Indian embassy or a bank.

The NRI account opening process for Zerodha cannot be done online and requires a range of documents to be submitted, including a PIS letter from the bank, Foreign Account Tax Compliance Act (FATCA) declaration, and a copy of the individual's passport.

While NRIs can invest in mutual funds through Zerodha Coin, NRI-PIS account holders cannot. This is because a PIS account requires a permission letter from the Reserve Bank of India (RBI) to buy and sell shares in the Indian markets. Funds from the Non-Resident Ordinary Account (NRO) and Non-Resident External Account (NRE) bank accounts can be invested in this account.

A Non-PIS account, on the other hand, does not require permission from the RBI, and funds can be invested from an NRO bank account. This account type is recommended for NRIs as it has fewer restrictions, lower costs, and a more straightforward investing experience.

US/Canada-based NRIs cannot buy mutual funds via Zerodha Coin

Non-Resident Indians (NRIs) cannot use Zerodha Coin to invest in mutual funds if they are based in the US or Canada. This restriction is due to compliance and regulatory issues. Zerodha has stated that NRIs from the US and Canada cannot invest in mutual funds, and this is reflected in the company's trading restrictions for NRIs.

Zerodha is a discount broker based in India, and it offers a platform called Coin for investing in mutual funds. While Zerodha does provide services to NRIs, there are some restrictions in place for those based in certain countries.

The company's website outlines the trading restrictions for NRIs, which include limitations on investing in mutual funds for those based in the US and Canada. NRIs from these countries are not allowed to invest in mutual funds through Zerodha due to compliance reasons. This restriction is further confirmed by Zerodha's customer support page, which states that US and Canada-based investors cannot invest in mutual funds through Coin.

It's important to note that while Zerodha Coin is not available for US/Canada-based NRIs, there may be other investment options available to them through Zerodha or other brokers. Additionally, the regulations and restrictions may change over time, so it's always a good idea to check for the most up-to-date information.

In summary, US/Canada-based NRIs cannot buy mutual funds via Zerodha Coin due to compliance and regulatory issues. Zerodha's trading restrictions for NRIs specifically outline this limitation. However, it's worth checking for updates and exploring other investment avenues available to NRIs.

Compliance and regulation issues prevent NRIs from using Zerodha Coin

Zerodha has outlined specific trading restrictions for NRIs. While NRIs can invest in equity delivery and trade in F&O via specific account types, there are several restrictions in place. For example, NRIs cannot trade in the currency or commodity segments, and intraday trading in equity is not permitted. Additionally, NRIs are not allowed to buy sovereign gold bonds (SGBs); they can only sell or hold existing units.

To trade in F&O, NRIs must appoint a custodian and obtain a Custodian Participant (CP) code. Zerodha has partnered with Orbis Financial to provide custodial services, but clients with a CP code cannot trade in the BSE Futures and Options (BFO) segment.

While NRIs from the US and Canada cannot invest in mutual funds through Zerodha Coin, NRIs from other countries may be able to invest if they have an NRI account with Zerodha. This account allows NRIs to invest in mutual funds through Zerodha, but it is important to note that there may still be compliance reasons that prevent certain investors from using this service.

NRI-Non PIS account holders can invest in mutual funds through Zerodha

Non-Resident Indians (NRIs) can invest in mutual funds through Zerodha, but only if they have an NRI account. There are two types of NRI accounts available at Zerodha: a Non-Portfolio Investment Scheme (Non-PIS) account and a PIS account.

A Non-PIS account does not require a permission letter from the RBI. Funds can only be invested from an NRO bank account. This account type is recommended as it has fewer restrictions, lower costs, and a more straightforward investing experience. With a Non-PIS account, NRIs can invest in equity, convertible preference shares, convertible debentures, warrants, or mutual fund units.

A PIS account, on the other hand, requires a permission letter from the RBI to buy and sell shares in the Indian markets. This letter must be obtained through one of Zerodha's partner banks. Funds from both NRO and NRE bank accounts can be invested in this account type.

It is important to note that Equity F&O trading is not available by default with NRI accounts. Additionally, NRIs must submit self-attested income proof when opening an account due to their classification as Clients of Special Category (CSC).

To open an NRI account with Zerodha, NRIs and Persons of Indian Origin (PIO) must ensure their residential status is marked as Non-resident on the ITD website. If the KYC status is Non-resident, there is no need to notarize the documents. However, if the KYC status is not Non-resident, the documents must be notarized by an authorized official. The specific documents required to open an NRI account, whether Non-PIS or PIS, are outlined on the Zerodha website.

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