How NRIs Can Apply for an IPO in India: Accounts, Limits and Tax (2026)

Yes, NRIs can apply for IPOs in India. NRIs, PIOs and OCI cardholders bid in the retail category, up to ₹2 lakh per application, using a PAN, an NRI demat account and an NRE or NRO bank account. Payment usually runs through ASBA at your bank. Shares paid for from an NRE account are fully repatriable; shares paid for from an NRO account are not, though the sale money can be sent abroad within the USD 1 million a year NRO limit.

Key points

• On 21 October 2026, Jio Platforms opened India's biggest IPO, raising up to ₹30,213 crore, as reported by Business Standard. Bidding closes on 23 October.
• There is no separate NRI quota. Non-residents of Indian origin bid as retail investors.
• You need a PAN, an NRI demat account and an NRE or NRO account with current KYC.
• The source of the money decides repatriation: NRE is fully repatriable; NRO is not, beyond the USD 1 million a year limit.
• Gains on listed shares are taxed in India at 20% (short term) or 12.5% above ₹1.25 lakh (long term), and for NRIs the tax is deducted at source.

Who can apply for an Indian IPO from abroad?

Indian citizens living abroad (NRIs), Persons of Indian Origin and OCI cardholders can bid in Indian IPOs. As Khaleej Times reported on 16 October 2026, foreign nationals without NRI, PIO or OCI status cannot bid in the retail or non-institutional categories. Living in Dubai, London or Singapore on a residence visa does not, by itself, give access to the retail window.

There is no NRI quota. NRI bids sit in the same retail book as resident Indians, and compete with them for allotment.

Which accounts does an NRI need?

Three things, all in your name and with KYC up to date:

1. A PAN. Every IPO application is matched to a PAN.
2. An NRI demat and trading account. A resident demat account opened before you moved abroad should be re-designated once you become non-resident.
3. An NRE or NRO bank account. This is where the bid money is blocked and, if you are allotted shares, debited.

According to Gulf News, a Portfolio Investment Scheme (PIS) account is not needed to bid in the IPO itself. It is needed later, when you sell listed shares on a repatriable basis through an NRE PIS account.

Should you pay from an NRE or an NRO account?

The choice is made when you bid, and it follows the shares for as long as you hold them.

Question	NRE account	NRO account
Where the money comes from	Money earned abroad and sent to India	Income earned in India (rent, dividends, pension) or old resident savings
Can the shares be repatriated?	Yes, fully	No, held on a non-repatriable basis
Sending sale money abroad	Freely, after tax	Within the USD 1 million a year limit for NRO balances, with Forms 145 and 146 (formerly 15CA and 15CB)
Selling after listing	Usually through an NRE PIS account; check with your broker	Usually through your NRO-linked account; check with your broker

The USD 1 million a year limit for remitting NRO balances is set by the Reserve Bank of India. If you expect to want the money abroad, paying from NRE is usually simpler. If the money is already in India and will stay there, NRO may be the natural source.

How do you pay: UPI or ASBA?

Resident retail investors often bid through UPI. UPI may not be available on NRI accounts, so most NRIs apply through ASBA (Application Supported by Blocked Amount), either in their bank's net banking or through a broker linked to their NRE or NRO account. The amount is blocked, not debited, until allotment. If you receive no shares, the block is released.

Setting up ASBA on an NRI account can take a day or two. For an issue that closes on 23 October, the time to check is before the last day, not on it.

How much can an NRI invest in one IPO?

The retail limit is ₹2 lakh per application. In the Jio Platforms issue, one lot is 12 shares, about ₹13,428 at the top of the ₹1,065 to ₹1,119 price band. Retail bids go up to 14 lots, or about ₹1.88 lakh, as reported by Khaleej Times. Above ₹2 lakh, a bid moves into the non-institutional category, which has its own rules.

When the retail book is oversubscribed, shares are allotted in minimum lots by a lottery, so a larger retail bid does not guarantee a larger allotment.

How are IPO gains taxed for an NRI?

India taxes gains on listed shares whether you are resident or not. For listed equity sold on a recognised exchange with securities transaction tax paid:

• Held 12 months or less: short-term gains are taxed at 20%, under the rules described by the Income Tax Department.
• Held more than 12 months: long-term gains above ₹1.25 lakh a year are taxed at 12.5%, as set out for long-term capital gains on listed equity.

Surcharge and cess apply on top. For NRIs, the tax is deducted at source when the shares are sold, usually by the broker. If more tax is deducted than is due, an Indian tax return is how you claim it back. Dividends paid to NRIs are also taxed in India.

Where you live matters too. A UK resident, for example, may also be taxed on the gain in the UK, with relief for Indian tax under the India-UK treaty. The UAE has no personal tax on such gains. Check the treaty between India and your country of residence before you sell.

What should you check before you bid?

1. Your status. Confirm your bank and broker hold you as non-resident, with current KYC.
2. Your accounts. PAN, NRI demat, and an NRE or NRO account that supports ASBA.
3. The money source. Decide NRE or NRO on purpose; it decides repatriation later.
4. The timing. Bid before the closing date, allowing for your bank's cut-off.
5. The records. Keep allotment, contract notes and TDS certificates for your Indian return and your local return.

An IPO is an investment decision, and this article does not cover whether to invest. It covers how to do it properly from abroad. Outcomes depend on your facts.

This article is general information, not tax, legal or investment advice. Team Greenwolf.