NRIs hold back on market bets amid tax knots and regulatory hurdles

Non-residents have tax deducted at source in India, along with potential taxation in their home countries

Non-resident Indians (NRIs) haven’t gone big on the Indian stock market story despite the post-pandemic boom. While domestic participation through mutual funds (MFs) and dematerialised (demat) accounts has soared, NRI participation figures show limited signs of a similar rise.

 

The value of NRI assets under custody rose from ₹3,486 crore in 2018–19 (FY19) to ₹17,275.96 crore as of May 2025, according to the latest data from the Securities and Exchange Board of India monthly bulletin. But this works out to less than 2 per cent of the ₹14 trillion in NRI deposits with banks.

 

Industry participants suggest that the exposure