How To Trade Futures And Options In the Indian Stock Markets
Non Resident Indians including ï¿½ NRIs, PIOs & OCIs can trade in Derivatives Segment out of the Rupee funds held in India on non-repatriable basis (NRO). This means they can trade futures & options in the Indian stock market.
F&O involves the following 3 things:
1) Application for Custodial Participant (CP) Code through SHCIL needs to be filled.
2) Opening of F&O Trading A/c
3) Opening of a Bank A/c with UTI Bank in NRO status
After receiving the clients query, an F&O trading kit containing the above forms is sent to the client. The filled applications are then sent by the client to the India office. If everything is in place, your F&O account is opened within 10-12 days.
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Once the F&O Trading A/c is opened you will get a User ID & Password for Online viewing of NSE Quotes. The Client can place his/her Orders Online himself, OR through "Online Helpdesk" Chat facility or an email or a Phone call. Distinct features of F&O Trading as compared to Cash Trading are as follows:
a) There is no Delivery of shares involved in F&O Trading
b) Speculation is possible in F&O Trading. Positions can be bought and sold or sold and bought the same day.
c) Positions can be carried forward up to the Last Thursday (contract expiry day) of a given month
d) A trading leverage of about 5 times the Base Capital shall be given depending upon the NSEï¿½s Margin requirement for each Script.
1) Passport & VISA Copy duly notarized at the country of residence (notarized by any bank or notary).
2) 8 Passport Size Photographs (2 of them to be signed across).
3) Copy of PAN Card duly notarized at country of residence.