NRI Demat and Trading Account

Living outside India, but still want to play in the Indian stock markets? If you wish to be an investor and purchase any commodity on the stock market, We are here to help you always.

Documents Required for NRI Demat Account

NRI demat account opening is a easy process with SMIFS and can be done online. You require the following documents to open demat account online:

  • Account opening form filled with mandatory details
  • Portfolio Investment Scheme letter of approval issued by RBI
  • Passport-sized photographs with signatures on it
  • Copies of the PAN card of the account holder
  • Address details of the residing country
  • Signature and photograph of the nominee
  • A copy of Visa
  • Copy of FEMA declaration
  • Canceled check leaf of NRE/NRO account

All the above documents should be attested at the Notary, Banker, or Indian Embassy of the country where the NRI is currently living.

Types of NRI demat accounts:

NRIs can maintain two types of demat accounts – repatriable and non-repatriable. They also need a basic PINS (Portfolio Investment Scheme) Account to buy shares from the secondary market.

Repatriable Demat Account:

Repatriable funds (funds which can be taken abroad) need to be kept in a separate bank account, i.e. an NRE account. Such accounts keep funds that are brought in from abroad.

Non-repatriable Demat Account:

Non-repatriable funds (funds that cannot be taken abroad) must be kept separate from repatriable funds. Such funds should be held in an NRO account. The proceeds from the sale of such investments cannot be taken abroad. The investments need to be maintained in a non-repatriable demat account.

So, open a demat account in India and start investing.





    Alternatively You Can Open DEMAT & Trading Account Through EKYC - Click here to Visit.

    Can NRI open a demat account?

    Yes, an NRI can have a demat account. According to SEBI, an NRI should have a demat account if he/she wants to trade in the stock market.

    How can I convert my demat account to an NRI demat account?

    Yes. A resident Demat Account can be converted into an NRI Demat Account. On a technical level, the old demat account is terminated, and a new demat account with NRI Non-Repatriable status is created. If you are an NRI and hold equities in your resident demat account, you have the following options:

    1. Open a new Demat Account (NRO), move your holdings there, then close the previous one. The process is straightforward, and the stock broker handles everything when opening the NRO demat account. Please keep in mind that your broker may want proof of purchase (for example, an old contract note) to ensure that these shares were purchased while you were a resident Indian
    2. Alternatively keeping the holdings in your existing demat account (resident) on a non-repatriation basis.
    3. You can even transfer your holdings to your family members’ residential demat account

    Can NRI have 2 Demat accounts in India?

    NRIs can open as many NRI Demat Accounts as they like. In most circumstances, NRIs open two demat accounts (NRE and NRO) to handle repatriable and non-repatriable transactions.

    What happens to my demat account after I become NRI?

    In such a case, your residential account is closed, and a new demat account with NRI Non-Repatriable status is opened.

    What are the limitations of the NRI demat account?

    A person with an NRI demat account cannot participate in commodity and currency trading.

    What is the difference between NRO demat and NRI demat?

    The NRE demat account is for investments that are repatriated, whereas the NRO demat account is for non-repatriated investments. The NRE demat is connected to an NRE bank account (PIS or Non-PIS), whilst the NRO demat is linked to an NRI non-PIS account.

    What is the difference between an NRI demat account and a normal demat account?

    As the name implies, the NRI Demat Account is a demat account for NRIs. Customers who reside in India can open a Normal Demat Account.

    What are the benefits of an NRI demat account?

    Individuals can participate in stock market trading and various investment plans through them. Moreover, NRIs can trade and invest in equity stocks, futures, options, bonds, and mutual funds through an NRI demat account.

    Can NRI invest in Indian stocks?

    NRIs are only allowed to trade Indian shares on a delivery basis. Intraday trading, BTST trading, STBT trading, and even short selling are not available to NRIs. NRIs are presently able to trade Indian equities and F&O, but not currency derivatives or commodities.

    Which stocks NRI Cannot buy?

    Yes, the list of restricted stocks for the NRI-PIS account can be available at the following websites:

    RBI URL: rbi.org.in/scripts/BS_FiiUSer.aspx

    NSDL: fpi.nsdl.co.in/web/Reports/ForeignInvestmentLimitMonitoringListing

    CDSL: cdslindia.com/publications/FIMonitoring