SEBI Eases NRI Derivatives Trading Rules

Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/109; Dated: 29.07.2025

SEBI Eases Trading Norms for NRIs in Derivatives Market

In a move aimed at simplifying regulatory requirements and enhancing market accessibility, the Securities and Exchange Board of India (SEBI) has decided to abolish certain mandatory conditions for Non-Resident Indians (NRIs) trading in exchange-traded derivatives. This is a significant step toward improving the ease of doing business for NRIs in India’s capital markets.

Removal of Clearing Member and CP Code Requirements

Previously, NRIs were required to notify the names of their clearing members and obtain a Custodial Participant (CP) code in order to trade in exchange-traded derivatives. These formalities often posed operational and administrative challenges for NRI investors. SEBI’s latest decision removes these requirements, streamlining the onboarding and trading process for NRIs.

Decision Based on Industry Forum Recommendations

The move comes in response to recommendations made by the Brokers’ Industry Standards Forum, which highlighted the operational bottlenecks and procedural hurdles faced by NRIs in complying with these mandates. SEBI’s adoption of these recommendations demonstrates its responsiveness to market feedback and its commitment to regulatory reform.

Boost to NRI Participation and Market Efficiency

By removing these procedural barriers, SEBI aims to encourage greater NRI participation in India’s derivatives markets. The simplification is expected to enhance operational efficiency, reduce compliance burdens, and foster a more investor-friendly environment for international participants looking to engage with Indian financial markets.

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