Can a US-based NRI open an NRI Demat Account in India? (2024)

FAQs

Can a US-based NRI open an NRI Demat Account in India? ›

The short answer is yes. NRIs can hold Demat accounts in India. To elaborate further, SEBI regulations dictate that for NRIs as well, it's mandatory to hold Demat accounts to trade in the stock markets. So, with regards to India, non-residents can also open Demat accounts to trade in the financial markets.

NRIs are allowed to invest in India through the portfolio investment scheme, or PIS—a scheme that enables them to purchase and sell shares of listed Indian companies on recognised stock exchanges by routing such transactions through their NRE or non-resident ordinary (NRO) savings account.

Yes, foreign nationals can open a demat account in India. However, certain regulations and procedures must be followed, such as obtaining a Permanent Account Number (PAN) and providing proof of identity and address.

A resident demat account can be converted into an NRO demat account as long as you have an NRO Saving Bank Account. A resident trading account cannot be converted into an NRI trading account. An NRI customer has to close the resident trading account and open a new NRI trading account.

What happens if an account is not converted into NRI account? If you continue operating a resident account after change in your residential status, it carries a penalty of up to 3 times the amount in your savings bank account or Rs. 2 lakh. Is it compulsory for NRIs to file ITR?

The short answer is yes. NRIs can hold Demat accounts in India. To elaborate further, SEBI regulations dictate that for NRIs as well, it's mandatory to hold Demat accounts to trade in the stock markets. So, with regards to India, non-residents can also open Demat accounts to trade in the financial markets.

To map both the accounts, you need to open 2 trading accounts. Currently, Zerodha supports only NRE or NRO accounts opened with HDFC Bank, Axis Bank, IndusInd Bank and IDFC FIRST Bank. NRIs can trade only in equity and equity Futures & Options. Zerodha doesn't offer NRI trading in intraday, currency and commodities.

An NRE account can only be opened by a person of Indian Origin or a person who has become a non resident under FEMA. Both category of person are referred to as NRI for further discussion.

To put it simply, the answer is yes. An NRI can have multiple NRI demat accounts under their possession. Depending on the investment objective and the type of investment, they can have different demat accounts.

How do NRI invest in Indian stock market? ›

An NRI can invest in Indian stocks through a Portfolio Investment Scheme (PIS) account. A PIS account is required specially when there are foreign funds being used for investment on a repatriable basis. Alternately, NRIs can also use their Indian funds from a NRO account to invest in Indian stocks.

Non-Resident Indian (NRI) Zerodha accounts can only be opened offline, unlike resident individual accounts that can be opened online. The documents required to open a Zerodha account as an NRI varies based on the type of NRI account.

Zerodha is the best and largest broker offering online NRI trading services. Prostocks is another online discount broker which is a very popular amount the NRI traders for its low-cost NRO Non-PIS trading account. ICICI Bank is the most popular full-service broker. They offer an NRI 3-in-1 account.

Can NRIs invest in mutual funds? Yes, NRIs can invest in mutual funds on a repatriation or non-repatriation basis if they are categorized as NRIs under FEMA regulations and the rules of the IT Act of 1961. Also, the NRI must have either an NRE, NRO, or an FCNR account to invest in mutual funds in India.