Zerodha reduces brokerage fees on non- Portfolio Investment Scheme (PIS) for NRIs

Zerodha, a pioneer of the discount broking model in India, has cut charges for non-Portfolio Investment Scheme (PIS) accounts, aiming to attract Non Resident Indians (NRIs) keen on Indian equities but at the same time wary of the cumbersome onboarding process.

PIS and Non-PIS accounts refer to investment channels through which NRIs can buy and sell stocks in India. These routes decide how investments are reported and regulated by the RBI. You are considered an NRI if you have stayed outside India for more than 182 days in a financial year.

NRIs can invest through PIS account with Zerodha using both NRE and NRO bank accounts. If NRI wishes to invest using a Non-PIS route then only NRO account can be used. NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts are designed for NRIs' banking needs. NRE accounts are for funds earned abroad, while NRO accounts are for income generated in India.

In a post on X (formerly Twitter), Nithin Kamath, co-founder and CEO of Zerodha, shared that the brokerage gets daily queries through messages from NRIs requesting an easier method of opening accounts. He noted that NRI accounts are much more valuable—at least 10 times—than resident accounts. But the existing paperwork requirements, especially the necessity of visiting an Indian embassy in person, are still a significant impediment.

 
Kamath stated that the move follows a regulatory shift by the Securities and Exchange Board of India (SEBI), which has eliminated the requirement of a Custodial Participant (CP) code to trade in the derivatives (F&O) segment. Zerodha has accordingly lowered its brokerage charge for all non-PIS (Portfolio Investment Scheme) NRI accounts to Rs 50 or 0.5% per trade, whichever is lower.