Derivatives (Futures & Options)
Empowering Global Investors to Participate in India’s Dynamic F&O Market
NRIs can now access India’s Dynamic Futures & Options Market for Hedging and Growth. With SEBI removing the CP Code, F&O trading is simpler. Through NRO-linked accounts with SEBI-registered brokers, we coordinate compliant setups for derivatives participation — enabling smooth execution and risk management.
Derivatives Participation Framework
NRI / OCI / PIO
- Eligibility: Permitted under FEMA with NRO-linked trading and PIS permissions
- Account Type: NRO Demat & Trading (Non-Repatriable) account
- Product Access: Equity Derivatives (Futures & Options) via SEBI-registered brokers
- Taxation: F&O income taxed as business income; TDS applicable on profits
- Repatriation: Non-repatriable; profits remain in NRO account
- Ideal For: Active NRIs seeking hedging or tactical equity exposure
Foreign Nationals
- Eligibility: Permitted via FPI Category I & II, subject to SEBI regulations
- Account Type: FPI custody/trading account with SEBI-registered intermediary
- Product Access: Index futures/options and stock derivatives (as per SEBI circulars)
- Taxation: Business or capital income under FPI taxation framework
- Repatriation: Fully repatriable through FPI route
- Ideal For: Global funds and institutions using derivatives for portfolio strategy
Resident Indians
- Eligibility: Fully permitted under SEBI and NSE/BSE guidelines
- Account Type: Resident Trading & Demat account with margin-enabled broker
- Product Access: Futures & Options, Currency Derivatives, Commodities (MCX)
- Taxation: F&O income treated as business income; tax audit may apply
- Repatriation: Not applicable
- Ideal For: Domestic investors and traders managing risk or leverage strategies
OCB / Foreign Companies
- Eligibility: Permitted via SEBI/FPI/IFSC institutional frameworks
- Account Type: Corporate custody or FPI account with registered custodian
- Product Access: Index futures/options, interest rate and commodity derivatives
- Taxation: Corporate or FPI tax regime depending on registration
- Repatriation: Fully repatriable under FEMA and FPI guidelines
- Ideal For: Corporates or offshore entities managing large institutional portfolios
Get expert guidance on compliant trading setups and live demo assistance from our dealing desk. Our team ensures seamless participation in India’s derivatives market under SEBI’s regulatory framework.
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