NRI stock market glossary covering A–Z investment terms every NRI must know before investing in Indian stock markets. Clear and practical guide.

NRI Stock Market Glossary: A–Z Terms Explained

Let’s be honest.

Investing in India as an NRI sounds exciting. But the moment you open a trading platform, things start getting confusing.

What’s PIS?
What’s repatriation?
Why is TDS deducted automatically?
Can I even do intraday trading?

If you’ve asked yourself these questions, you’re not alone.

That’s exactly why this NRI stock market glossary exists. Not as a boring textbook. But as a practical, real-world guide written for NRIs like us — whether you’re in Kuwait, UAE, UK, US, or anywhere else.

Because here’s the truth.

If you don’t understand the language of the market, you’ll always feel unsure. And uncertainty leads to poor decisions.

So let’s fix that.

Why This NRI Stock Market Glossary Is Important for NRIs

Investing as a resident Indian is one thing.

Investing as an NRI? That’s different.

You deal with:

NRE and NRO accounts
RBI rules
PIS permissions
Repatriation limits
TDS on capital gains

Therefore, knowing generic stock terms isn’t enough.

You specifically need an NRI stock market glossary that explains terms from an NRI angle.

Because one misunderstood term can cost lakhs.

And honestly, we work too hard abroad to make careless mistakes.

How to Use This NRI Stock Market Glossary Effectively

Don’t just read it once.

Instead:

Bookmark it
Refer to it before investing
Share it with fellow NRIs
Use it while opening accounts

Over time, these terms will become natural to you.

And confidence will replace confusion.

Now let’s dive into the complete NRI stock market glossary (A–Z).

Complete NRI Stock Market Glossary (A–Z)

A – Terms in the NRI Stock Market Glossary

Ask Price

The lowest price a seller is willing to accept.

For example, if Infosys has an ask price of ₹1,500, that’s what sellers are demanding.

Understanding this basic term in the NRI stock market glossary helps you place smarter limit orders.

Asset Allocation

This means dividing your investments across:

Equity
Debt
Gold
International assets

As NRIs, we must balance Indian investments with global exposure. That’s why asset allocation is critical.

B – Terms in the NRI Stock Market Glossary

Bear Market

When markets fall 20% or more.

Remember 2020? Many NRIs panicked.

However, experienced investors used that crash to accumulate.

So yes, bear markets aren’t always bad.

Blue Chip Stocks

Large, stable companies like:

Reliance
TCS
HDFC Bank

If you’re new, start here. This is one of the safest entries in the NRI stock market glossary.

C – Terms in the NRI Stock Market Glossary

Capital Gains

Profit earned after selling shares.

Two types:

Short-Term Capital Gains (STCG)
Long-Term Capital Gains (LTCG)

For NRIs, TDS is deducted automatically. Therefore, always check net returns.

This is one of the most important terms in the NRI stock market glossary.

Circuit Breaker

Temporary halt in trading during extreme volatility.

India has 10%, 15%, and 20% market-wide circuit limits.

Knowing this prevents emotional panic selling.

D – Terms in the NRI Stock Market Glossary

Demat Account

Where your shares are stored electronically.

NRIs must open:

NRE Demat (fully repatriable)
NRO Demat (limited repatriation)

This is foundational in the NRI stock market glossary.

Dividend

Profit distributed to shareholders.

Important point: Dividends are subject to TDS for NRIs.

E – Terms in the NRI Stock Market Glossary

Equity

Ownership in a company.

Higher equity allocation means higher risk — but also higher potential returns.

EPS (Earnings Per Share)

Company profit divided by total shares.

A higher EPS often indicates strong profitability.

F – Terms in the NRI Stock Market Glossary

Face Value

Original value of a share.

Important during stock splits and bonus issues.

F&O (Futures and Options)

Derivative trading instruments.

Most NRIs cannot trade F&O under PIS.

Therefore, don’t assume what residents can do applies to you.

G – Terms in the NRI Stock Market Glossary

Growth Stocks

Companies reinvesting profits instead of paying dividends.

Higher risk. Higher reward.

H – Terms in the NRI Stock Market Glossary

Hedge

Reducing risk using opposite positions.

However, most retail NRIs don’t need complex hedging strategies.

I – Terms in the NRI Stock Market Glossary

IPO (Initial Public Offering)

When a company first lists on the stock exchange.

Yes, NRIs can apply in IPOs through NRE/NRO routes.

J – Terms in the NRI Stock Market Glossary

Joint Demat Account

Allowed with conditions.

However, check brokerage rules carefully.

K – Terms in the NRI Stock Market Glossary

KYC (Know Your Customer)

Mandatory identity verification.

Without KYC, you cannot invest.

Simple but critical.

L – Terms in the NRI Stock Market Glossary

Liquidity

Ease of buying or selling shares.

Large-cap stocks have higher liquidity.

Long Position

Buying a stock expecting it to rise.

Most NRIs invest this way.

M – Terms in the NRI Stock Market Glossary

Market Capitalization

Total value of a company.

Categories:

Large Cap
Mid Cap
Small Cap

Understanding market cap helps manage risk better.

Margin Trading

Borrowing money to trade.

Generally restricted for NRIs.

N – Terms in the NRI Stock Market Glossary

NRE Account

Fully repatriable.

NRO Account

Limited repatriation.

These two are central pillars in the NRI stock market glossary.

O – Terms in the NRI Stock Market Glossary

Order Types

Market Order
Limit Order
Stop Loss

Stop loss is your safety net. Always use it.

P – Terms in the NRI Stock Market Glossary

P/E Ratio

Price divided by earnings.

Helps evaluate valuation.

PIS (Portfolio Investment Scheme)

RBI route that allows NRIs to invest.

Extremely important in this NRI stock market glossary.

Q – Terms in the NRI Stock Market Glossary

Quarterly Results

Company performance released every three months.

Markets react strongly.

R – Terms in the NRI Stock Market Glossary

Repatriation

Transferring money abroad.

Probably the most critical term in the entire NRI stock market glossary.

Rights Issue

Opportunity for existing shareholders to buy more shares.

S – Terms in the NRI Stock Market Glossary

SIP (Systematic Investment Plan)

Monthly investing method.

Perfect for long-term NRI wealth creation.

Stock Split

Share price reduces by increasing share count.

T – Terms in the NRI Stock Market Glossary

TDS (Tax Deducted at Source)

Tax deducted before income reaches you.

NRIs face TDS on:

Capital gains
Dividends

Trading Account

Used to buy and sell shares.

U – Terms in the NRI Stock Market Glossary

Unrealized Gains

Profit not yet booked.

Paper profit only.

V – Terms in the NRI Stock Market Glossary

Volatility

Speed and intensity of price movement.

Global events often increase volatility.

W, X, Y & Z – Final NRI Stock Market Glossary Terms

Wealth Creation

Long-term compounding process.

Ex-Dividend Date

Buy before this date to receive dividend.

Yield

Return generated on investment.

Practical Example Using This NRI Stock Market Glossary

Let’s say you’re working in Dubai.

You open:

NRE account
Demat account
Trading account

You invest ₹10 lakh.

After 5 years:

Portfolio value = ₹18 lakh
Gain = ₹8 lakh
LTCG tax deducted
Remaining amount repatriated

Every step involves terms from this NRI stock market glossary.

And now, you understand them.

Common Mistakes Avoided Using This NRI Stock Market Glossary

Confusing NRE and NRO
Ignoring TDS impact
Trading without knowing order types
Investing without asset allocation
Panicking during bear markets

Knowledge removes fear.

And this NRI stock market glossary is your protection layer.

FAQs on NRI Stock Market Glossary

1. Why is an NRI stock market glossary necessary?

Because NRI investing rules differ from residents.

2. Can NRIs do intraday trading?

Generally, no under PIS.

3. Is capital gain taxable for NRIs?

Yes. TDS applies.

4. What is the most important term in the NRI stock market glossary?

Repatriation and PIS.

5. Is SIP suitable for NRIs?

Absolutely. It’s disciplined and effective.

Final Thoughts

Look.

Investing from abroad doesn’t have to feel complicated.

But it does require clarity.

Once you understand this NRI stock market glossary, things start making sense.

You stop reacting emotionally.

You start investing strategically.

And slowly, wealth builds.

Because at the end of the day, we NRIs don’t just invest for returns.

We invest for freedom.
For family.
For future security.

And that journey begins with understanding the basics.

Now you’re equipped.

Let’s build wealth — confidently. 🚀