NRI Demat Account

No, RBI approval is not required to open a Demat account.

But for NRIs to trade or invest in India Stock Market on a repatriation basis i.e via a NRE demat account, one needs a Portfolio Investment Scheme (PIS) approval from RBI. PIS enables NRIs to buy and sell securities in India from the stock exchanges by routing these transactions through their NRE Bank Account. 

If you are planning to invest on a non-repatriation basis, you do not need the PIS approval from the RBI. You just need an NRO Bank Account linked to your NRO trading and demat account.

Yes, NRIs can open a joint NRI Demat account in India if the NRI is the primary holder of the PIS, Non-PIS and Demat Accounts. The joint holder in a NRI demat account can be either a Resident Indian or another NRI.

NRIs can open 2 types of accounts – Repatriable & Non-Repatriable – with details of respective Bank accounts.

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1. Individual Account Opening Form (AOF) & KRA cum CERSAI KYC Form of all holders
2. Pan Card of all holders
3. Passport / PIO Card / OCI Card (any one mandatory)
4. Proof of Correspondence Address
5. Proof of Permanent Overseas Address (if different from Correspondence address) (Mandatory if Correspondence address is that of a third party i.e. C/o address)
6. Applicant’s declaration that he has complied with & will continue to comply with FEMA regulations and other applicable laws (part of AOF)
7. Proof of Bank Details – NRE/NRO Savings Bank Accounts – mentioned on AOF
8. Mariners Declaration or Certified copy of CDC (Continuous Discharge Certificate) for Mariner NRI
9. Applicant’s undertaking with complete Residential Address (other than PO Box address) if he submits an
10. Overseas Post Office Box address as Correspondence / Permanent address (part of AOF)

Note for USA and Canada Based NRI’s few guidelines to be followed.

1. At the time of account opening client should be in INDIA.
2. Self self-attested copy of the Latest immigration page containing the latest arrival stamp of the visit to INDIA is required.
3. Online/Mobile Trading is not allowed.

Yes, NRIs are allowed to Invest in Exchange Traded Funds (ETFs). NRIs can invest in ETFs both on repatriation as well as non repatriation basis.

A few of the products that NRI’s can invest in are –  

Equity* – Only cash

Derivatives / F&O (only via NRO a/c i.e. non – repatriation basis) 

Mutual Funds (except NRIs of USA and Canada)

IPOs (except NRIs of USA and Canada)

ETFs

Fixed Deposits

Insurance 

Bonds (sovereign gold bonds are not an available option)

Real Estate  

*Intra-day trading is not permitted for NRIs. An NRI Investor has to take delivery of shares purchased and give delivery of shares sold.

Yes, clients can have two separate trading accounts based on NRE & NRO.

India would have a double tax avoidance agreement (DTAA) with a lot of the countries. Depending on which country you are investing from, you need to check what is the DTAA of India with that country.

Generally for NRIs investing in Indian equities, more than 1 year is treated as long term and long term capital gain on equity is taxable at 10%. Short-term capital gains from equity are taxable at a flat 15%. If you are investing in debt, then it is taxed as per your slab.

NRI Demat account is an account that enables NRIs to buy, sell and hold shares and securities in India, and store them in an electronic format.

For the purposes of investments in shares/securities in India, Person of Indian origin means a citizen of any country other than Pakistan or Bangladesh, if
a) at any time, has held an Indian passport; or
b) either parents or grandparents were a citizen of India by virtue of the Constitution of India or Citizenship Act, 1955 (57 of 1995); or
c) is a spouse of an Indian citizen or a person referred to in clause (a) or (b)

Yes, PIOs and OCIs can invest in shares in India.

Yes, NRI can participate for buyback of shares

For NRIs, Long Term Capital Gain on equity is taxable at 10 per cent exceeding Rs.1 lakh exemption,Short-term capital gains from equity are taxable at a flat 15 per cent.

Yes, except US & Canada based NRI all other NRI’s can avail online Trading facility.

No, for NRI Commodity trading facility not available

No, for NRI Currency Trading facility not available

NRO (Non Resident Ordinary Account) & NRE (Non Resident External Account)

Yes, except US & Canada based NRI, other country NRI can participate in IPO. While seeking the credit of sale proceeds of IPO shares to NRE/NRO bank account, the designated bank should be provided with the details regarding date of allotment and cost of acquisition to calculate the taxes, if any.

Yes, apart from US based NRI, NRI can participate for Rights.

Yes, NRI can avail portfolio management services. However NRIs will have to open a PIS Account as required under RBI guidelines in order to invest in the PL-PMS scheme.

No, BTST not allowed, NRI can only buy shares when they have clear funds in PIS bank a/c and sell shares only when they clear stock balance in demat a/c

No for NRI SLBM facility not available.

Yes, US /Canada based NRI can open Trading & demat account but few NRI guidelines needs to be followed.

At the time of account opening client should be in INDIA.

Self attested copy of Latest immigration page containing latest arrival stamp of visit to INDIA required.

-Online/Mobile Trading not allowed.

No, any NRI or a PIO can have only one PIS account in India. Say for example if he is having a PIS account with X bank and he wants to shift to HDFC Bank, then he has to close the PIS account there and open a PIS account with HDFC Bank.

NRI can avail following Product & Services- Equity Broking, PMS, Mutual Funds, Insurance, IPO & Real Estate

No, Aadhar card is not mandatory for NRI

Yes, NRIs are allowed to invest in futures & options segment thru NRO a/c on non repatriation basis only

Yes, NRI can participate for OFS of shares

Yes NRI can invest in Mutual funds in India. Only for US & Canada based NRI, few AMC’s (Asset Management Company) has restricted Mutual Fund investments.

Yes, you can open both NRO & NRE Trading/demat a/c

Following documents are to be collected alongwith Account Opening Form (AOF) while registering NRI / PIO / OCI Clients

1. PAN Card

2. If Indian Passport – First and last page of passport, Valid Visa

3. If Overseas Passport – Front page of passport which carries client photo and passport details.

4. OCI or PIO card (if available)

5. Foreign address proof — Any one of — Driving License, bank statement or Electricity bill (latest)

6. NRO/NRE Saving and PIS bank account proofs — Cancel cheque leaf for saving account and PIS permission for PIS account.

No, intra day trade not allowed for NRI,NRI Investor has to take delivery of shares purchased and give delivery of shares sold.

If NRI has Aadhar card then it has to be linked with PAN but its not mandatory if NRI do not have Aadhar.