NRI brokerage at Zerodha: PIS and non-PIS accounts

Overview

Non-Resident Indians (NRIs) who wish to invest in Indian equity markets through Zerodha operate under a regulatory framework that differs from resident Indian clients. The Foreign Exchange Management Act 1999 (FEMA) and SEBI regulations prescribe two primary routes for NRI equity investment: the Portfolio Investment Scheme (PIS) administered by the Reserve Bank of India (RBI), and the non-PIS route for non-repatriable investments. Each route carries different brokerage rates and compliance requirements at Zerodha.

The brokerage structure for NRI clients is materially different from the zero-delivery / Rs 20 flat model available to resident Indians. PIS accounts carry a percentage-based delivery brokerage of 0.5 percent or Rs 200 per order (whichever is lower), making Zerodha’s NRI brokerage higher in absolute terms than its resident rates for large trades.

Regulatory framework for NRI equity investment

PIS route (repatriable)

The Portfolio Investment Scheme (PIS) is mandated by the RBI under FEMA’s Schedule 2 to the FEMA (Non-Debt Instruments) Rules 2019. Under PIS, an NRI can purchase and sell shares of Indian listed companies on a repatriable basis – meaning sale proceeds and dividends can be remitted abroad. PIS requires the NRI to:

1. Open a Non-Resident External (NRE) bank account designated as the PIS account with an RBI-authorised bank (such as HDFC Bank, SBI, or others).
2. Route all investment funds through this designated NRE-PIS bank account.
3. Receive SEBI-mandated reporting from the broker to the RBI/bank on each PIS transaction.

Zerodha’s NRI trading account for PIS clients is linked to the designated NRE-PIS bank account. The broker is required to report each buy and sell transaction to the designated bank and to ensure that sectoral investment limits prescribed for NRI investment are not breached.

Non-PIS route (non-repatriable)

NRIs can also invest on a non-repatriable basis using funds from a Non-Resident Ordinary (NRO) bank account. This route does not require PIS designation. Investments made on the non-PIS / NRO route cannot have their sale proceeds freely remitted abroad (subject to certain RBI limits on NRO repatriation).

Zerodha offers the non-PIS route through an NRO-linked trading account. The non-PIS route allows NRIs to use Zerodha’s standard flat-fee brokerage structure (zero delivery, Rs 20 intraday and F&O), which is the same as for resident Indians.

Brokerage rates: PIS accounts

For NRI clients trading under the PIS route, Zerodha charges:

PIS accounts are restricted to equity delivery only. NRIs cannot trade intraday or in futures and options under the PIS route. This restriction is regulatory, not a Zerodha policy choice.

Why percentage brokerage for PIS

The higher percentage brokerage for PIS accounts reflects the additional compliance burden on the broker. Each PIS transaction must be reported to the designated bank, which then reports to the RBI. Zerodha maintains additional back-office infrastructure for PIS transaction reporting. The Rs 200 cap limits the maximum brokerage per order, providing some protection for large trades.

Example: Buying shares worth Rs 50,000 under PIS. Brokerage = min(0.5% x 50,000, Rs 200) = min(Rs 250, Rs 200) = Rs 200. The cap is reached at a turnover of Rs 40,000 per order.

Example: Buying shares worth Rs 20,000 under PIS. Brokerage = min(0.5% x 20,000, Rs 200) = min(Rs 100, Rs 200) = Rs 100.

Brokerage rates: non-PIS accounts

NRI clients trading under the non-PIS (NRO) route at Zerodha are treated the same as resident clients for brokerage purposes:

Intraday and F&O trading is permitted under the non-PIS / NRO route because this route is non-repatriable and subject to fewer RBI reporting requirements than PIS.

Statutory levies

Statutory levies (STT , exchange charges , GST , stamp duty , SEBI turnover fee ) are identical for NRI and resident Indian clients. These are set by law and exchange regulations and do not vary by client residency status.

DP charges for NRI demat accounts

NRI demat accounts are subject to the same DP charges as resident accounts: Rs 13.50 plus GST per ISIN per day on sell delivery transactions. The AMC for the demat account is also Rs 300 plus GST per year.

TDS on NRI investments

NRI investors are subject to Tax Deducted at Source (TDS) on income from Indian securities under the Income Tax Act 1961 read with applicable Double Taxation Avoidance Agreements (DTAA). Key TDS provisions for NRIs:

• Short-term capital gains on listed equity (Section 111A): TDS at 20% (post-Finance Act 2024 rate, raised from 15%)
• Long-term capital gains on listed equity (Section 112A): TDS at 12.5% (post-Finance Act 2024 rate, raised from 10%) on gains above Rs 1,25,000
• Dividends: TDS at 20% (reducible under DTAA to 10-15% for treaty countries)
• Interest income: TDS at 30% for NRE accounts not eligible for exemption

TDS is deducted by the company or paying entity, not by the broker. However, brokers are required to furnish information to facilitate accurate TDS calculation.

Account opening requirements for NRI

Opening an NRI account at Zerodha requires:

• Overseas KYC documents (passport with NRI stamp or valid visa, overseas address proof)
• NRE bank account details (for PIS route) or NRO bank account details (for non-PIS route)
• PIS permission letter from the designated bank (for PIS route)
• In-person verification or video KYC as prescribed by SEBI

Zerodha charges Rs 500 for NRI account opening (higher than the Rs 200 for resident accounts) to cover the additional compliance documentation.

Limitations and restrictions

NRI clients at Zerodha face certain restrictions not applicable to resident Indians:

• PIS clients cannot trade intraday or in derivatives (regulatory restriction)
• NRI clients cannot trade in currency derivatives (FEMA restrictions)
• Sectoral investment limits: NRIs collectively cannot hold more than 10% of the total paid-up share capital of an Indian company; aggregate NRI holding limit is 24% (extendable to sectoral limits with special resolution)
• Short selling is generally not permitted for NRI investors under PIS

Comparison with other brokers for NRI clients

NRI brokerage rates vary among brokers. As of mid-2026:

• HDFC Securities: 0.5% or Rs 25 minimum for PIS delivery (capped differently)
• Angel One: percentage-based NRI brokerage with minimum charges
• ICICI Direct: percentage-based with NRI-specific account management fees

Zerodha is among the lower-cost options for NRI PIS accounts due to the Rs 200 per-order cap, which benefits large-trade NRI investors. Non-PIS NRI clients at Zerodha enjoy the same flat-fee structure as resident clients.

See also

• Zerodha brokerage structure overview
• Equity delivery brokerage
• Account opening charges
• DP charges on Zerodha
• STT and CTT on Zerodha
• SEBI
• Zerodha

References

1. FEMA (Non-Debt Instruments) Rules 2019, Schedule 2 (Portfolio Investment Scheme)
2. RBI Master Direction on Foreign Investment in India, Reserve Bank of India (updated 2023)
3. SEBI Circular on NRI trading accounts and PIS reporting requirements
4. Income Tax Act 1961, Sections 111A and 112A (as amended by Finance Act 2024)
5. Income Tax Act 1961, Section 195 (TDS on payments to non-residents)
6. Zerodha NRI account page, zerodha.com/nri (accessed May 2026)
7. SEBI Master Circular for Stock Brokers, SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/72