NRI IPO Guide 2026
A complete step-by-step guide for Non-Resident Indians to participate in Indian IPOs.
Can NRIs Apply for IPOs in India?
Yes — Non-Resident Indians (NRIs) can apply for IPOs in India, but must meet specific requirements under FEMA (Foreign Exchange Management Act) and SEBI guidelines.
Two categories of NRI participation:
- NRI on repatriable basis (NRE account)— proceeds can be sent back abroad
- NRI on non-repatriable basis (NRO account) — proceeds stay in India
Most mainboard IPOs allow both categories. Check the RHP of each IPO for specific NRI reservation details.
What Do NRIs Need to Apply?
PAN Card
Mandatory for all IPO applications. NRIs must have an Indian PAN card. Apply at NSDL or UTI portal if you don't have one.
NRI Demat Account
A demat account with an Indian depository participant (DP). Can be linked to NRE (repatriable) or NRO (non-repatriable) bank account.
NRE or NRO Bank Account
NRE Account: Foreign earnings converted to INR, fully repatriable. NRO Account: India-sourced income (rent, dividends), limited repatriation. Both can be used for IPO applications.
ASBA Enabled
Applications must go through ASBA (Application Supported by Blocked Amount) using your NRE/NRO bank account. Note: UPI-based IPO applications are available only to resident Indians. NRIs must use net banking ASBA.
How to Apply for an IPO as an NRI
Open NRI Demat + Trading Account
Choose a SEBI-registered broker that supports NRI accounts. Required documents: PAN, passport, visa/OCI, overseas address proof. Processing time: 7–15 business days.
Link NRE/NRO Bank Account
Your demat account must be linked to your NRE or NRO account for IPO fund blocking (ASBA). Inform your bank to enable net banking for ASBA.
Check IPO Eligibility
Not all IPOs allow NRI participation. Check the RHP under "Eligible Investors" section. Most mainboard IPOs allow NRIs. Some SME IPOs may restrict NRI participation.
Apply via Net Banking ASBA
Log in to your NRE/NRO bank’s net banking → IPO/ASBA section. Select the IPO, enter lot quantity, bid at cut-off price. Funds are blocked (not debited) until allotment. NRIs cannot use UPI for IPO applications.
Check Allotment
Check allotment on the registrar’s portal using your PAN. If allotted: shares credited to NRI demat account. If not allotted: blocked funds released within 1 business day.
Listing and Trading
Shares listed in your NRI demat account. You can sell on listing day or hold for long-term gains. Proceeds go to NRE account (if applied on repatriable basis) or NRO account (if non-repatriable).
Best Brokers for NRI IPO Applications
| Broker | NRI Account | Opening | NRI IPO Support |
|---|---|---|---|
| ICICI Direct | NRE + NRO | Online | Full support |
| HDFC Securities | NRE + NRO | Online | Full support |
| Kotak Securities | NRE + NRO | Online | Full support |
| Zerodha | NRO only | Online | Limited |
| Angel One | NRE + NRO | Online | Full support |
Note: Zerodha and Upstox have limited NRI support compared to full-service brokers. For IPO applications, ICICI Direct and Kotak Securities are preferred by NRI investors.
Tax on IPO Gains for NRIs
Short-term (< 12 months)
20%
Flat rate on listed securities. TDS deducted automatically by broker.
Long-term (> 12 months)
12.5%
Above ₹1.25 lakh exemption per year. No indexation benefit.
TDS for NRIs: TDS is deducted automatically on capital gains for NRIs. NRIs can claim credit for TDS in their home country if India has a DTAA (Double Taxation Avoidance Agreement) with that country. India has DTAA with USA, UK, UAE, Singapore, Canada and 50+ countries.
Consult a chartered accountant for your specific tax situation.
Frequently Asked Questions
Can NRIs apply for SME IPOs in India?
Most SME IPOs on NSE Emerge and BSE SME allow NRI participation, but some issuers restrict NRI applications. Always check the RHP under "Eligible Investors" before applying.
Can NRIs use UPI for IPO applications?
No. UPI-based IPO applications (through BHIM UPI) are available only to resident Indians. NRIs must apply through ASBA via net banking of their NRE or NRO bank account.
What is the NRI quota in mainboard IPOs?
NRIs fall under the NII (Non-Institutional Investor) category, which has 15% reservation (5% for sNII, 10% for bNII). There is no separate NRI quota — NRIs compete with domestic HNIs.
Can NRIs apply through a Power of Attorney (POA)?
Yes — a resident Indian holding POA from an NRI can apply on their behalf, provided the NRI has a valid demat account and NRE/NRO bank account linked to ASBA.
How long does it take to open an NRI demat account?
Typically 7–15 business days. Online account opening with brokers like ICICI Direct or Kotak Securities is faster. Required documents: PAN, passport, visa/OCI card, overseas address proof.
Are NRI IPO gains taxable in India?
Yes. Short-term gains (< 12 months) are taxed at 20%. Long-term gains (> 12 months) above ₹1.25 lakh are taxed at 12.5%. TDS is automatically deducted by the broker.
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