To invest in the Indian stock markets, an NRI can open an NRO or NRE savings account.

An NRO account must be linked to the trading and Demat account to trade futures and options.

External Account for Non-Residents (NRE):
An NRE account is a bank account that allows you to repatriate both the principal and interest generated. You can transfer foreign cash from your overseas bank account to your NRE account, where it will be converted to rupees. The funds in your NRE account can be converted to dollars and transferred back to your foreign account, together with any interest earned. Reparability refers to the ability of money to be relocated from a foreign country to the investor's native country.

Non-resident Ordinary Account (NRO): This account is for non-residents who do not live in the United States.

Money cannot be transferred from an NRO account to an NRE account, which is the main distinction. Money that has been transferred from an NRE account to an NRO account cannot be returned to the NRE account. Reparability refers to the ability of money to be transferred from a foreign country to the investor's native country.

Repatriation is restricted by the NRO. The principal and interest from a non-resident ordinary account (NRO) can only be repatriated up to $1 million per year. The accountant must be linked to your trading account to trade futures and options.