NRIs Can Now Trade Derivatives Without CP Code: SEBI

A Custodial Participant (CP) code is a unique code assigned to Non-Resident Indians (NRIs) for trading in Equity Derivatives (F&O) on stock exchanges. To do this, the NRIs were required to open an account with Custodial and receive a CP Code from them. However, in a recent circular issued by the Securities and Exchange Board of India (SEBI), these requirements are now being removed.

As per the circular dated July 29, 2025, SEBI is removing this requirement to bring operational efficiency and to make it easier for NRIs to trade without any hassle.

Earlier, it was mandatory for NRIs to notify the names of the Clearing Members for clearing derivative trades to the Stock Exchange and obtain the CP Code from the Stock Exchange. This code was used by the Stock Exchange to monitor the position limits of such NRI clients.

Now, as per the latest circular, NRIs no longer need to notify the clearing members or the exchange. This means that they do not need to obtain a CP Code. The position of NRIs will be monitored by the exchanges in the same way as the regular domestic clients.

The board has directed the stock exchanges and clearing corporations to issue new guidelines within 30 days. They are directed to give an option to the current NRI Client to exit from CP Code by sending a request through email within 90 days. Also, the NRIs, who initially choose to use CP codes but wish to exit the framework later, will be given an option through an email request.