What Changes About Investing as an NRI
You don't lose access to Indian markets once you become an NRI, but several investment routes require a specific account setup that resident investors don't need — and a few (PPF, some mutual funds) come with real restrictions worth knowing before you assume a resident-era account or habit still works.
Portfolio Investment Scheme (PIS) & Demat
To buy and sell Indian listed shares on a repatriable basis (i.e., with the ability to move sale proceeds abroad), NRIs generally need to invest through the RBI's Portfolio Investment Scheme (PIS), which requires:
- An NRE bank account linked to a PIS permission letter from your bank.
- A dedicated NRI demat and trading account with a broker that supports PIS.
- All trades routed through this designated PIS account — you can't simply use a resident-era demat account after becoming an NRI.
A non-repatriable route also exists (investing via an NRO account without PIS, for gains you're not planning to move abroad), but most NRIs who want flexibility set up the PIS route.
Every route above needs a PAN — it's mandatory KYC for any demat or trading account. Don't have one yet? See our PAN Card Guide or start directly with PAN Card Express.
Mutual Funds for NRIs
How It Generally Works
- Most Indian mutual fund houses accept NRI investors with standard NRI KYC (passport, overseas address proof, FATCA/CRS declaration).
- Investments and redemptions are made through your NRE or NRO account, depending on the source of funds.
- You don't need a demat account for most mutual funds — they can be held in a regular folio, unlike direct stock investing.
Where It Gets Complicated
- Some Indian AMCs (asset management companies) don't accept new investments from NRIs based in the US or Canada, or add significant extra compliance, due to FATCA reporting burden.
- This varies by fund house and can change — always confirm current NRI eligibility directly with the specific AMC before assuming a fund accepts your country of residence.
NPS & PPF Eligibility
- NPS (National Pension System): NRIs who are Indian citizens can generally open and contribute to an NPS account, subject to current eligibility rules — confirm current terms, since treatment of OCI cardholders versus Indian-citizen NRIs has evolved over time.
- PPF (Public Provident Fund): NRIs generally cannot open a new PPF account. If you opened one while you were still a resident, it can typically continue until maturity under current rules, but usually cannot be extended further as an NRI.
- EPF: A separate topic with its own withdrawal rules — see our EPF Withdrawal guide.
Extra Restrictions for US/Canada NRIs
If you're a tax resident of the United States or Canada, expect more friction across several investment types — not because you're legally barred from Indian markets, but because FATCA (US) and similar reporting regimes create a compliance burden that some Indian financial institutions choose not to take on. In practice this means:
- Fewer mutual fund houses accepting new investments from you.
- More extensive documentation requested during account opening.
- It's worth asking a bank or broker upfront whether they service NRIs from your specific country before starting the paperwork.