Your guide to buying Indian stocks in Canada

Despite tough global conditions, India continues to be one of the fastest-growing economies in the world. In fact, the World Bank projects India’s economy will grow around 6.7% in both 2026 and 2027, well above the global average. For Canadian investors, it’s a great opportunity to gain exposure to emerging market growth and diversify beyond the shores of North America. But investing in India from abroad also involves a few legal and logistical steps.

In this guide, we’ll walk you through how to invest in Indian stocks from Canada, including which accounts you need, how to choose a platform, tax rules to know, and how a tool like Wise can help you save on cross-border currency exchange.

We will be looking at:

Can you legally buy Indian Stocks from Canada? Understanding access & restrictions How to invest in Indian stocks from Canada: Step-by-step guide Best platforms to invest in Indian stocks from Canada Can Canadian platforms offer Indian stock access? Currency exchange: CAD to INR Tax implications of investing in Indian stocks from Canada Commonly asked questions about buying Indian stocks in Canada

Can you legally buy Indian Stocks from Canada?

Canadians can legally invest in Indian stocks, providing investor access to one of the world’s most dynamic emerging markets. But, it’s not as simple as buying North American shares. Since Canada-based investors are considered Non-Resident Indians (NRIs) under Indian law, there are specific regulations, account setups, and documentation requirements to follow.

Understanding access & restrictions

As a Canadian resident, you qualify as an NRI under Indian regulations, allowing you to invest in Indian equities, mutual funds, and other financial instruments. However, there are particular requirements and limitations to be aware of:

1. Open NRE/NRO bank accounts

To begin investing, you'll need to open either a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account with an Indian bank¹ to facilitate the transfer of funds between Canada and India.

2. Set up a Demat and trading account

A Demat (Dematerialized) account is required to hold shares in electronic form. You'll also need a trading account to execute buy and sell orders. These accounts can be linked to your NRE or NRO bank accounts.

3. Comply with KYC and FATCA requirements

Indian regulations mandate Know Your Customer (KYC) compliance, which involves submitting identification and address proofs². Additionally, due to the Foreign Account Tax Compliance Act (FATCA), certain mutual fund houses may have restrictions for Canadian NRIs.

4. Investment limits and restrictions

NRIs can invest in Indian companies, but there are caps on the percentage of ownership:

• An individual NRI can invest up to 5% of the paid-up capital of a listed Indian company³.
• The total NRI investment in a company is capped at 10%, which can be increased to 24% with shareholder approval¹.

Additionally, NRIs are restricted to delivery-based trading and cannot engage in intraday trading¹.

How to invest in Indian stocks from Canada: Step-by-step guide

Investing in Indian stocks from Canada takes a few extra steps compared to trading in North American markets due to regulations set by India’s central bank and tax authorities. Here’s a simple guide to help you get started.

Step 1: Get a PAN or Permanent Account Number

Before anything else, you’ll need to apply for a PAN card from India’s Income Tax Department, which is required for opening trading and bank accounts, as well as for paying taxes on capital gains.

You can apply for a PAN online through Protean (NSDL) or UTIITSL, even if you're a non-resident.

Step 2: Open an NRE or NRO bank account in India

To fund your investments, you must open one of the following with a registered Indian bank:

• NRE (Non-Resident External) account – Allows you to hold and repatriate foreign earnings in INR, fully tax-free in India.
• NRO (Non-Resident Ordinary) account – Used to manage income earned in India, like rent or dividends.

Most investors use an NRE account for stock investments due to the ease of repatriating funds.

Step 3: Open a Demat and trading account

You’ll need to open a Demat account to hold your Indian stocks and a trading account to buy and sell shares. Most major Indian brokers like Zerodha, ICICI Direct, HDFC Securities, and Kotak Securities offer NRI-specific services that guide you through linking your Demat account with your NRE/NRO bank account.

Step 4: Verify your identity

To complete your account opening, you’ll usually need to submit:

• A copy of your PAN card
• Valid Canadian passport and proof of address
• OCI card (if applicable)
• Bank details for your NRE/NRO account

Step 5: Fund Your Indian bank account

Once your accounts are approved, you can send funds from your Canadian bank account to your NRE or NRO account in India.

To cut down on currency conversion fees, many investors use Wise to transfer Canadian dollars and convert them to INR at the real mid-market rate.

Step 6: Buy Indian stocks

Log into your trading account and search for Indian-listed companies on the NSE (National Stock Exchange) or BSE (Bombay Stock Exchange). Enter the number of shares, place your order, and track your investments just as you would on other platforms.

Step 7: Track and report your investments

As a Canadian tax resident, any capital gains or dividend income from Indian stocks must be reported to the CRA. If your total foreign investments exceed CAD $100,000 at any point in the year, you’ll also need to file Form T1135⁴.

Best platforms to invest in Indian stocks from Canada

For Canadians of Indian origin looking to invest in Indian equities, several SEBI-registered brokers in India offer NRI-friendly platforms. Some of these brokers provide a “3-in-1” account setup (NRE/NRO bank account + Demat + trading) and handle regulatory compliance like PIS registration and tax documentation. Here’s a comparison of some of the leading options:

Broker	NRI Access	Account Required	Key Features
Zerodha	Yes	NRO (Non-PIS) + Demat + Trading (via partner banks)	Low-cost brokerage, intuitive Kite platform, PIS-compliant, no 3-in-1 option
ICICI Direct	Yes	NRE/NRO + 3-in-1 Account	Full-service platform, research tools, auto-linked ICICI Bank accounts
HDFC Securities	Yes	NRE/NRO + 3-in-1 Account	Integrated with HDFC Bank, strong customer service, in-depth research reports
Kotak Securities	Yes	NRE/NRO + 2-in-1 and 3-in-1 Account	Trading tools and webinars, linked Kotak Mahindra accounts

Can Canadian platforms offer Indian stock access?

For Canadian investors who don’t want to open a full NRI account in India, there are still ways to gain exposure to Indian markets. While most Canadian and US brokerages don’t provide direct access to Indian exchanges, there are several alternatives that can help you invest in Indian equities with fewer regulatory hurdles.

Indian ETFs listed in Canada and the US

Exchange-traded funds (ETFs) focused on India offer a simple and regulated way to gain diversified exposure to Indian equities. These funds are listed on Canadian or US exchanges and can be bought through most Canadian brokerage platforms.

Some examples include:

• iShares S&P India Nifty 50 Index ETF (TSX: XID) – Listed in Canada, this ETF tracks India’s top 50 companies and is hedged to the Canadian dollar.
• iShares MSCI India ETF (NYSE: INDA) – US-listed, it tracks large- and mid-cap Indian equities.
• WisdomTree India Earnings Fund (NYSE: EPI) – Focuses on Indian companies with strong earnings and includes exposure across sectors.

ADR listings of Indian companies

Some large Indian companies trade on US exchanges via American Depositary Receipts (ADRs). These can also be bought through Canadian brokerages that offer US market access.

Examples of Indian ADRs include:

• Infosys (NYSE: INFY) – A global IT and consulting company.
• Wipro (NYSE: WIT) – Another major player in IT services.
• Dr. Reddy’s Laboratories (NYSE: RDY) – A prominent Indian pharmaceutical company.
• Tata Motors (NYSE: TTM) – Manufacturer of cars and commercial vehicles, including Jaguar Land Rover.

ADRs can be a convenient way to invest in Indian blue-chip companies without needing an Indian brokerage account.

International mutual funds with Indian exposure

Several Canadian and US mutual funds include Indian stocks as part of a broader emerging markets or Asia-focused portfolio. These are managed by global asset managers and can be purchased through financial advisors or self-directed accounts.

Examples include:

• TD Emerging Markets Fund – May allocate a portion of assets to Indian equities.
• Fidelity Emerging Asia Fund – Offers indirect exposure to India through regional holdings.
• Mackenzie Emerging Markets Fund – Includes Indian companies as part of a diversified EM strategy.

Be sure to review the fund’s holdings and strategy before investing to confirm how much India exposure is included.

Currency exchange: CAD to INR

When investing in Indian stocks from Canada, currency exchange is a crucial factor that can significantly impact your returns. Since Indian stock investments typically require funding in Indian Rupees (INR), Canadian investors must convert their Canadian Dollars (CAD) before transferring funds to their NRI investment account in India.

Things to consider when converting CAD to INR

• Exchange rate markups: Many banks and traditional providers apply hidden markups to the mid-market exchange rate, reducing the amount you receive in INR.
• Transfer fees: In addition to markup costs, you may be charged a flat fee or percentage-based fee for sending money internationally.
• Transfer speed: Processing times can vary from minutes to several business days depending on the provider.
• Regulatory limits: Indian regulations (under the RBI’s Liberalised Remittance Scheme) apply limits and documentation requirements to foreign transfers for investment purposes.

Using a low-cost, transparent provider, like Wise, can reduce the impact of fees and currency spreads, giving you more INR to invest.

Tax implications of investing in Indian stocks from Canada

Investing in Indian stocks as a Canadian resident comes with several tax considerations, both in India and in Canada.

Capital gains

In India, capital gains on equity investments are taxed depending on the holding period. Short-term capital gains (STCG) on listed shares (held <12 months) are taxed at 20% from 15%, while long-term gains (LTCG) are taxed at 12.5% from 10%¹¹.

In Canada, capital gains from foreign investments are also taxable at 50%¹². You must report gains in your Canadian tax return using the adjusted cost base (ACB) in CAD¹³. Any Indian tax paid may be claimed as a foreign tax credit to avoid double taxation.

Dividend income

Indian companies typically deduct a 20% withholding tax on dividends paid to NRIs¹⁴. In Canada, dividend income from foreign sources is fully taxable and must be reported as part of your annual income. As with capital gains, you may be eligible for a foreign tax credit.

Foreign investment reporting

If the total cost of your foreign investments exceeds CAD 100,000 at any time during the year, you must file CRA Form T1135 – Foreign Income Verification Statement. This includes your holdings in Indian equities¹⁵.

Commonly asked questions about buying Indian stocks in Canada

Q: Can I invest in Indian stocks from Canada?

A: Yes, Canadians can legally invest in Indian stocks by opening an NRI trading and demat account with a SEBI-registered Indian brokerage. This typically requires setting up an NRE or NRO account, depending on your investment and repatriation preferences. While direct access for non-NRIs is limited due to RBI restrictions, there are alternative ways to gain exposure to Indian markets.

Q: How do I fund my Indian investment account from Canada?

A: You can fund your NRE or NRO bank account in India through international wire transfers from your Canadian bank. Some Canadian banks like RBC and TD offer global transfer services, though they often come with higher fees and exchange rate markups. Many investors prefer using services like Wise, which offer the mid-market exchange rate and lower fees for CAD to INR transfers, making it more cost-effective to fund Indian brokerage accounts.

Q: What’s the best way to reduce currency exchange costs?

A: To reduce currency conversion costs, it's smart to use a provider that offers the mid-market exchange rate with low, transparent fees. Traditional banks often apply hidden markups on exchange rates and charge additional service fees. Wise is a popular alternative that helps investors save when transferring CAD to INR by offering mid-market rates and clear, upfront pricing.

Q: Can I buy Indian ETFs or stocks on Canadian platforms?

A: While Canadian brokerages typically don’t offer direct access to Indian stock exchanges, you can still invest in Indian markets through ETFs or American Depository Receipts (ADRs). For example, ETFs like iShares MSCI India ETF (INDA) or EPI – WisdomTree India Earnings Fund are available on US exchanges and can be purchased via Canadian platforms that support US trading. ADRs for companies like Infosys (INFY) or Wipro (WIT) also trade on US exchanges and offer another way to gain exposure to Indian equities.

Conclusion

For Canadians, investing in Indian stocks is a chance to tap into one of the world’s fastest-growing economies. But while there's no shortage of opportunity, it’s worth taking the time to understand the tax rules and regulatory requirements and avoiding any unexpected hurdles before jumping in.

Currency exchange is just another piece of the puzzle worth planning for. With services like Wise, you can often get better rates and lower fees than you would through a traditional bank, which means more of your money stays invested.

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Sources:

1. How can an NRI invest in the Indian stock market? - ICICI Bank
2. You Need to Know About Know Your Customer India in 2025 - KYC Hub
3. State Bank of India - Portfolio Investment
4. T1135 Reporting of foreign property - CIBC
5. Visa Infinite Avion - RBC
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7. Additional Account Services - RBC Royal Bank
8. TD Direct Investing Commission Schedule and Statement of Disclosure of Rates and Fees
9. Send money Internationally to your recipient’s bank account with TD Global Bank Transfer
10. Wise Fees & Pricing: Only Pay for What You Use
11. Reuters
12. Canada.ca - Capital gains deduction limit
13. Calculating your capital gain or loss - Canada.ca
14. Income Tax Rules | NRI Taxation | Accounts - HSBC India
15. Foreign Income Verification Statement - Canada.ca

Sources verified on 9 July, 2025