Resident Indians are not the only ones allowed to open a demat account and trade in the Indian stock market. Even Non-Resident Indians (NRIs) are allowed to do so. However, there’s a catch. NRIs cannot use the same demat account that they were using during their time in India. So, what are they supposed to do then? They’re required to either convert their existing demat account into an NRI demat account or open a new demat account for NRIs to be able to invest in the Indian stock market. If you’re wondering where you can find a suitable NRI demat account, this article may be able to help you out.
How can NRIs find a suitable demat account in India?
If you’re an NRI looking to open an NRI demat account online, here’s what you would have to do.
1. Choose the kind of demat account that you wish to open
Firstly, you would have to decide upon the kind of demat account that you wish to open. There are two types that NRIs can open - demat accounts for repatriable investments and demat accounts for non-repatriable investments.
Repatriable demat accounts are linked with NRE bank accounts and allow you to transfer the funds from the sale of your investments back to the foreign country in which you reside. Non-repatriable demat accounts, on the other hand, are linked to NRO bank accounts. They don’t allow you to transfer the funds from the sale of your investments back to the country of your residence.
2. Choose the depository participant cum stock broker
Once you’ve chosen the kind of NRI demat account that you wish to open, the next step that you need to do is find the right depository participant. Considering the fact that almost all depository participants are also stockbrokers, you can open 3-in-1 or 2-in-1 accounts.
3-in-1 accounts combine an NRI bank account, a trading account, and an NRI demat account, all into one. A 2-in-1 account, on the other hand, combines a trading account and an NRI demat account only. Opting for a 2-in-1 account requires you to open an NRI bank account (either NRE or NRO account) separately.
Also, when choosing a depository participant cum stock broker, it is a good idea to go with entities that offer additional services to NRIs such as a dedicated NRI desk, research reports, stock recommendations, and call and trade options.
Conclusion
If you’re a Non-Resident Indian who is looking to open an NRI demat account online, get in touch with Motilal Oswal right away. All it takes is a few minutes to open a demat account for yourself since the entire process can be completed online.
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