In a bold move aimed at unlocking the true potential of overseas Indian wealth, Zerodha, India’s largest stock brokerage platform, has announced a major price slash on its brokerage charges for Non-Portfolio Investment Scheme (Non-PIS) accounts. This strategic reduction is set to transform NRI investment in India, especially for those looking for a seamless entry into Indian equity markets without enduring cumbersome paperwork.
With millions of Non-Resident Indians (NRIs) around the world eager to contribute to India’s economic growth, this announcement comes as a welcome relief. Zerodha’s updated pricing is now pegged at just ₹50 or 0.5% per trade—whichever is lower—for all NRI investors using Non-PIS accounts. This is a significant drop from previous rates and is designed to attract a wider diaspora base who have long been deterred by regulatory hurdles and high transaction costs.
Zerodha: Regulatory Roadblocks and the Push for Change
The NRI investment landscape in India has traditionally been layered with complexity. To invest in Indian equities, NRIs must operate through either a PIS (Portfolio Investment Scheme) or a Non-PIS route. While PIS accounts require extensive documentation and regulatory oversight from the Reserve Bank of India (RBI), Non-PIS accounts—accessible through NRO (Non-Resident Ordinary) bank accounts—offer a less bureaucratic alternative.
However, until recently, trading in derivatives (F&O) required a Custodial Participant (CP) code—yet another barrier. But a recent shift in policy by the Securities and Exchange Board of India (SEBI) has now removed this requirement, prompting Zerodha to capitalize on the reform.
“We receive messages and emails every single day from NRIs across the globe, all asking one thing—please make investing in India easier,” said Nithin Kamath, CEO and Co-founder of Zerodha, in a post on X (formerly Twitter). “The change by SEBI offered us the perfect opportunity to respond to those requests.”
Understanding PIS vs. Non-PIS: What’s the Difference?
For NRIs, the route of investment can make a significant difference in terms of compliance and costs.
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PIS accounts: Operate under RBI oversight and allow trading through both NRE (Non-Resident External) and NRO accounts. However, this path involves a heavy documentation load, including often having to visit Indian embassies for authentication—an unattractive prospect for many.
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Non-PIS accounts: Require only an NRO account and have lighter compliance requirements, making them more appealing to investors seeking a hassle-free experience.
While Zerodha has lowered charges on Non-PIS accounts, it continues to charge ₹200 or 0.5%—whichever is lower—for trades made through PIS accounts. Kamath clarified that this pricing difference is due to ongoing operational complexities with the PIS route.
Zerodha: A Market That’s Ten Times More Valuable
Zerodha’s decision to focus on Non-PIS accounts is backed by the immense untapped potential of NRI investors. “NRI accounts are at least 10 times more valuable than domestic resident accounts,” Kamath noted. “But red tape has prevented many from participating.”
The brokerage’s simplified process, bolstered by digital-first onboarding and transparent communication, aims to convert curiosity into action. By leveraging technology, Zerodha plans to eliminate much of the red tape and manual processing that has historically alienated global Indians.
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