By ipomarket.in Editorial Team · Last reviewed: 2026-10-31
Disclaimer: This article is for informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Please read the offer document carefully and consult a SEBI-registered investment advisor before investing.
Non-Resident Indians (NRIs) often ask whether they can participate in Indian IPOs the same way resident investors do. The short answer is yes, but the account setup and the rules around holding limits work differently. This guide explains how the process operates through Zerodha, the accounts you need, and the regulatory limits that govern NRI participation.
Can NRIs apply for IPOs?
NRIs can apply for Indian IPOs online. Through Zerodha, applications can be submitted either using UPI or through netbanking ASBA. ASBA stands for Application Supported by Blocked Amount, where the application money stays in your bank account and is only blocked (not debited) until shares are allotted.
Importantly, no special approval is required from the RBI for NRIs to buy or sell IPO shares in India. The Portfolio Investment Scheme (PIS) permission that NRIs need for secondary-market trading is not required for IPO applications. Instead, NRI IPO investment must be routed through Non-PIS NRE or NRO savings accounts only.
You can read more about the broader regulatory backdrop in our note on sectoral FDI limits and NRI participation in IPOs.
Accounts you need
To apply for IPOs as an NRI, you need:
- An NRI demat account, linked to an NRE or NRO bank account.
- A Non-PIS NRE or NRO savings account, since IPO applications must go through non-PIS accounts.
- Your PAN details matching across the demat and bank accounts.
These linkages are not just paperwork. If the PAN on your demat account does not match your bank records, the application can be rejected.
UPI or ASBA: which route applies
For NRIs, ASBA is mandatory for all IPO applications. The money is blocked in your NRE or NRO account and released if you do not get an allotment.
NRI IPO applications via UPI are, according to SaveTaxs, generally less commonly available and depend on specific bank-broker support. In practice, this means the UPI route may not work for every NRI through every bank. It is also reported that some banks, such as ICICI Bank, do not offer online IPO applications to NRI customers. If your bank falls into this category, you may need to rely on the netbanking ASBA route instead.
If you are new to how the application mechanics work, our explainer on how to apply for an IPO online in 2026 covers the basics that apply to residents and NRIs alike.
Holding limits NRIs must know
Regulations cap how much NRIs can hold, both individually and in aggregate:
- An individual NRI can invest up to 5% of the company's post-issue paid-up capital.
- The aggregate NRI and OCI holding limit in an IPO is capped at 10% of paid-up capital.
- This aggregate limit can be raised to 24% if the company passes a special resolution.
Separately, since June 2024, NRIs, OCIs and resident Indians can hold up to 100% in a Foreign Portfolio Investor (FPI) corpus within an International Financial Services Centre (IFSC) such as GIFT City. This applies to the FPI route in GIFT City and is distinct from the standard NRI IPO limits above.
Eligibility is set by each company
A key point many NRIs miss: Indian companies going public can decide whether or not to allow NRIs to invest in their IPO. Because of this, NRIs must check the Red Herring Prospectus (RHP) to confirm their eligibility for each IPO before applying.
NRIs based in the USA and Canada face restrictions in IPO participation if the issuing company mentions this in the prospectus. If you hold a US or Canadian address, reading the RHP closely is especially important. Our guide on how to read a DRHP explains where to look for this kind of disclosure.
Which investor category do NRIs fall under?
There is generally no separate IPO NRI quota. NRIs apply under the same Retail or Non-Institutional categories as resident investors. NRIs applying for up to Rs 2 lakh are classified as Retail Individual Investors (RII), the same threshold that applies to residents.
This means the allotment process for NRIs follows the standard rules, including the lottery system in the retail category when an issue is oversubscribed.
Summary
NRIs can take part in Indian IPOs through Zerodha using an NRI demat account linked to a Non-PIS NRE or NRO account, applying via ASBA (and sometimes UPI, depending on bank support). No RBI approval and no PIS permission are needed for IPO applications. Keep the individual 5% and aggregate 10% (or 24% with a special resolution) limits in mind, confirm eligibility in each RHP, and note the extra scrutiny for US and Canada-based NRIs.
FAQ
Do NRIs need RBI or PIS approval to apply for IPOs?
No. No special approval is required from the RBI for NRIs to buy or sell IPO shares, and PIS permission is not required for NRI IPO applications. Applications must, however, be routed through Non-PIS NRE or NRO savings accounts.
Can NRIs use UPI to apply through Zerodha?
NRIs can apply through Zerodha using UPI or netbanking ASBA. ASBA is mandatory for all NRI IPO applications. According to SaveTaxs, the UPI route is generally less commonly available for NRIs and depends on specific bank-broker support, so it may not work in every case.
How much can an NRI invest in a single IPO?
An individual NRI can invest up to 5% of the company's post-issue paid-up capital. The aggregate NRI and OCI holding is capped at 10%, which can rise to 24% if the company passes a special resolution. NRIs applying up to Rs 2 lakh are treated as Retail Individual Investors.
Are US and Canada-based NRIs allowed to apply?
NRIs from the USA and Canada face restrictions if the issuing company mentions this in the prospectus. Since each company can decide whether to allow NRIs at all, checking the Red Herring Prospectus for eligibility is essential before applying.
Is there a separate IPO quota for NRIs?
Generally no. There is no separate NRI quota; NRIs apply under the same Retail or Non-Institutional categories as resident investors.
Last reviewed: 2026-10-31 by the ipomarket.in Editorial Team.