SEBI Eases NRI Derivatives Trading Rules

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SEBI NRIs exchange-traded derivatives NRI trading rules clearing member CP code SEBI circular derivatives market access

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.

Click Here To Read The Full Circular 

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied