Demat Account for NRI: A Comprehensive Guide

As an NRI, you can open a demat account with a depository participant (DP) in India, which is a member of the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE).

In India, the depositories are NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited), which are both regulated by the Securities and Exchange Board of India (SEBI).

To open a demat account, you'll need to provide your PAN card, passport, and other necessary documents to the DP, who will then facilitate the account opening process.

The DP will also provide you with a unique client ID and a demat account number, which you'll use to access your account online or through a mobile app.

So, you're an NRI looking to open a demat account, but you're not sure what it is. A demat account is an electronic account that allows you to hold and trade securities in a digital format.

In India, demat accounts are maintained by depositories, which are custodian organizations that hold securities in electronic form. The two main depositories in India are NSDL and CDSL.

A demat account can hold a wide range of securities, including stocks, bonds, and mutual funds. This makes it a convenient way to manage your investments from anywhere in the world.

To open an NRI Demat account, you'll need to meet the eligibility criteria, which includes being a Non-Resident Indian with a valid passport and residence permit or visa. You'll also need to provide a copy of your passport, proof of overseas address, and other documents as specified by the financial institution.

NRIs must have an NRI bank account in India, which can be an NRE or NRO account, to conduct transactions related to investments. You'll need to submit relevant documents to fulfill the Know Your Customer (KYC) requirements and comply with regulatory norms.

Here are the required documents for opening an NRI Demat account:

To open an NRI Demat account, you'll need to meet the eligibility criteria.

NRIs (Non-Resident Indians) are the only ones eligible to open an NRI Demat account, which includes individuals residing abroad for employment, business, or any other purpose for an indefinite period.

You'll need to provide specific documents, such as a valid passport, proof of overseas address, Overseas Citizen of India (OCI) card, Person of Indian Origin (PIO) card (if applicable), and Foreign Account Tax Compliance Act (FATCA) declaration form.

To open an NRI Demat account, you'll also need to have an NRI bank account in India, which could be an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account.

Here are the documents required to open an NRI Demat account:

You'll also need to fulfill the Know Your Customer (KYC) requirements by submitting relevant documents to comply with regulatory norms.

To open an NRI Demat account, you need to select a registered Depository Participant (DP) authorized by the Securities and Exchange Board of India (SEBI). This is the first step in the process.

You can usually download the application form from the DP's website or obtain it from their office. Once you have the form, you'll need to complete it accurately and submit it along with the required documents.

Required documents include passport copies, proof of address abroad, and a PAN card copy. You may also need to submit other specified documents.

The DP will verify the provided information and conduct background checks as per regulatory requirements. This is a crucial step in the process.

Some DPs may require you to undergo an In-Person Verification (IPV) process, which can be done through video conferencing or by visiting the DP's office or a designated branch in India.

Upon successful verification, you'll need to sign an agreement with the DP outlining the terms and conditions governing the NRI Demat account.

Once all formalities are completed, the DP will activate the NRI Demat account, and you'll receive login credentials to access the account online.

You can then transfer funds from your NRE or NRO bank accounts to the NRI Demat account for investing in securities traded on Indian stock exchanges.

To secure your Demat account, you'll need a unique code called TPIN, or Transaction Personal Identification Number. It's a crucial step in authorizing trades and ensuring only authorized transactions are processed.

A TPIN is used for every trade in your Demat account, adding an extra layer of security to prevent unauthorized transactions.

In-person verification (IPV) is a crucial step in opening an NRI account with Angel One. It ensures that the client's identity is verified accurately.

For clients outside India, IPV requires providing all proofs duly attested by the client themselves and either by the Indian embassy, consulate general, overseas notary, or overseas banker. The attestation must confirm that the documents have been verified with originals.

For clients in India, a self-attested arrival copy and IPV are required. This can be authorized by a Sub-Broker or any nearby branch person of Angel One.

To verify your identity, you'll need to provide the necessary documents and attestations. This may involve some additional paperwork and documentation, but it's a necessary step to ensure the security of your account.

Here's a summary of the IPV requirements:

There are three main types of Demat accounts for NRIs: NRE, NRO, and Repatriable Demat accounts. Each type has its own unique features that cater to the specific needs of NRIs.

The NRE Demat account is linked to a Non-resident External account and allows for investment in the Indian stock markets with the possibility of transferring funds back to the resident country. This makes it convenient for NRIs to invest in India.

The NRO Demat account is linked to a Non-resident Ordinary account and restricts the transfer of funds outside India. This type of account is ideal for NRIs who want to invest in the Indian markets without the need for fund repatriation.

Here's a brief summary of the types of Demat accounts for NRIs:

The Repatriable Demat account is another option for NRIs, which allows for both local and international transactions. This feature makes it convenient for NRIs to open a demat account online while facilitating easy repatriation of up to one million USD annually.

To open a Demat account, you'll need to provide some essential documents. The list includes a duly filled account opening form signed by the applicant, a PIS letter of approval issued by the RBI to NRI applicants, and a photocopy of a valid Indian passport.

A PAN card, recent photograph, and cancelled cheque of an NRE or NRO account are also required. Additionally, proof of your respective bank and depository accounts, as well as an overseas address proof such as a utility bill or bank statement, are needed.

Here's a summary of the documents required:

The nomination facility is also available in Demat accounts, and it's mandatory as per SEBI guidelines.

To open a Demat account as an NRI, you'll need to provide some specific documents. The list of required documents includes a duly filled account opening form signed by the applicant.

A PIS (Portfolio Investment Scheme) letter of approval issued by the RBI to NRI applicant is also necessary. This is a crucial document that proves your eligibility to invest in India.

You'll need to provide a photocopy of your valid Indian passport, which serves as proof of your Indian citizenship. A photocopy of your visa is also required, as it shows your current status abroad.

In addition to these documents, you'll need to provide a PAN card, which is a unique identification number issued by the Indian government. A passport size photograph is also required, as it helps the depository to identify you.

A canceled cheque of your NRE or NRO account is needed, which serves as proof of your bank account details. You'll also need to provide proof of your respective bank and depository accounts.

Finally, you'll need to provide an overseas address proof, such as a utility bill, bank statement, driving license, or government-issued identity card, to prove your current address abroad.

Here's a summary of the required documents:

The nomination facility is available in Demat Accounts. Every Depository Participant (DP) offers the option to add a nominee to the account.

You can easily add a nominee to your Demat Account. Nomination is mandatory as per recent SEBI guidelines.

Having a demat account as an NRI offers numerous benefits that make investing in the Indian stock market a convenient and hassle-free experience. You can easily invest in various financial instruments such as shares, convertible debentures, ETFs, mutual funds, and more from anywhere across the globe.

Transactions made by NRIs reflect promptly in their demat accounts, eliminating the need for cumbersome physical documentation processes. This ensures fast and efficient transactions while minimizing the risks associated with forgery, physical document loss, delayed delivery, and other potential issues.

One of the significant advantages of an NRI demat account is that it allows for holding even a single share, providing flexibility in investment choices. This flexibility is particularly beneficial for NRIs who may want to invest in a specific company or sector.

Here are some of the key benefits of an NRI demat account:

With an NRI demat account, you can also receive corporate benefits such as dividends, interest, and bonuses in a smooth and efficient manner. All corporate actions are updated automatically in your account, ensuring that you don't miss out on any benefits.

Brokerage is a fee or commission that a broker charges for executing transactions and offering specialized services on behalf of clients.

For equity delivery trading, Angel One offers zero brokerage for the first 30 days.

NRIs can enjoy free brokerage for equity delivery, ETFs, IPOs, and mutual funds with Angel One.

The brokerage charge for equity delivery is 0.50% per executed order or ₹0.05 per unit, whichever is lower.

Here's a breakdown of the brokerage charges for different types of trades:

Brokerage is a fee charged by brokers for executing trades on behalf of clients. This fee can vary depending on the type of trade and the broker's policies.

Angel One offers equity delivery trading for NRI customers through NRE/NRO PIS accounts, with a brokerage charge of 0.50% per executed order or 0.05 per unit, whichever is lower. For the first 30 days, there is no brokerage charge.

The brokerage charge for equity delivery trades is 0.50% per executed order or 0.05 per unit, whichever is lower. This is a competitive rate that can help you save money on your trades.

Here's a breakdown of the brokerage charges for different types of trades:

It's worth noting that Angel One offers zero brokerage for the first 30 days, which can be a great incentive to open an account and start trading.

IIFL is a well-established stockbroker with over 3 decades of experience in the brokerage industry. They offer a wide range of investment products, making them a great option for those looking to diversify their portfolio.

Their IIFL Demat account is particularly suitable for NRIs who require guidance and research to make informed investment decisions. One of the key features of this account is research advisory, which provides valuable insights to help investors make informed choices.

Demat account opening with IIFL can be done through video validation, a convenient and secure process. This feature allows investors to open their account remotely, saving time and effort.

A dedicated relationship manager is assigned to each client, providing personalized support and guidance throughout the investment journey. This level of service is particularly beneficial for NRIs who may require additional support in navigating the Indian investment landscape.

IIFL also offers wealth and financial management services, helping clients achieve their long-term financial goals. With their expertise and guidance, investors can create a comprehensive financial plan tailored to their needs.

Prostocks is a discount broker based in Mumbai that offers Demat accounts for NRIs. The brokerage is a flat Rs.100 per executed order.

They provide real-time updates at various time frames, including minute, hour, day, week, month, half-yearly, and yearly basis. You get six different charts to track market trends.

Intraday trading is supported with over 150 technical studies. This means you can analyze market data and make informed decisions.

You can set custom alerts based on price and percentage triggers. This way, you can stay on top of market movements.

Any number of scrips can be added to your market watch. This allows you to keep an eye on multiple stocks simultaneously.

Sharekhan is a leading online brokerage company in India with a large customer base, ranking 3rd after Zerodha and ICICI Direct. They have a huge network of branches and franchises with over 550 locations across India.

Sharekhan operates through more than 1800 offices and also has a presence in the UAE and Oman. This widespread presence is a testament to their commitment to providing excellent services to their clients.

One of the key features of Sharekhan's NRI Demat account is an integrated RBI-approved bank account with HDFC Bank. This integration makes it convenient for clients to transfer funds between their bank account and trading account.

Sharekhan's NRI Demat account also offers free fund transfers from banks to trading accounts or vice versa. This is a great feature for clients who want to manage their finances efficiently.

In addition to this, Sharekhan provides free online training for beginners and advanced traders. This is a valuable resource for clients who want to improve their trading skills.

Sharekhan's trading platform, Trade Tiger, is considered one of the finest in India. This platform provides a seamless trading experience for clients, making it easier for them to execute trades and manage their portfolios.

Kotak Securities is a brokerage arm of Kotak Mahindra Bank, offering a Kotak Bank linked demat account. This means fund transfers between bank account and trading account are automatic.

One of the notable features of Kotak Securities Demat account is the 3 in 1 trading account, which enables seamless transfer of funds.

Kotak Securities also offers all investment avenues under one roof, making it a convenient option for investors.

Funds transfer can be done via Kotak netbanking gateway, making it a hassle-free process.

If you're looking for detailed research reports and recommendations, Kotak Securities has got you covered.

Angel One offers a range of services for NRI customers, including equity delivery trading through NRE/NRO PIS accounts.

Their brokerage charges are competitive, with equity delivery charges of 0.50% per executed order or 0.05 per unit, whichever is lower. This means that for small trades, the brokerage charge could be lower.

One notable feature of Angel One is that they offer ₹0 brokerage for the first 30 days. This can be a significant cost savings for new investors.

Overall, Angel One seems like a solid choice for NRIs looking for a reliable and affordable brokerage service.