Can an NRI trade in his father's trading account? (2024)

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An NRI can trade using his father's trading account. However, the father would be liable to pay income tax on any gains arising from such investments.

An NRI can transfer money to the father's bank account as a gift or loan which would be linked to the trading and Demat account. Due to online trading facilities made available by almost all brokers, an NRI can easily operate and manage father's trading and Demat accounts and trade without any complexities of getting involved in NRI Trading account opening and handling.

Important Points to Note:

• An NRI cannot link his bank account to the father's trading account. The bank account, Demat account, and trading account should all be in the same name.
• Though the above approach can be used as a workaround, it is not advisable to do so to avoid any issues in the future on account of any investigations. It is always recommended to trade in the capacity of an NRI, on attaining the residency status of NRI.

1. What is the process to close an NRE/NRO account?
2. How to open NRI trading account?
3. Can NRI do day trading?
4. Can NRI use Demat account in India?