71. Indian Stock Market - Demat

Account

Q.Hello Mr Chand, I am a Canadian citizen of Indian origin. I along with my husband and children immigrated to Canada in 1996. I have recently got my OCI status. I have following questions: Prior to coming to Canada we had invested in Indian Share market and we still hold the shares. All the shares are in paper version and have not been demated as yet. Along with this we have also received some shares (again in paper version) from my father-in-law as gift. Now we would like to sell all the shares but we do not have a pan card to demat the shares. please advise us about the procedure to obtain the Pan card number and to demat these shares. My husband still does not have OCI status. Also we invested in a flat in Delhi which is still under construction. If we want to sell this flat , do we have to open a bank account in India? if yes then can we open one while sitting in Canada and what type of account are we eligible to open? we will appreciate your help on these questions. Thanks Sonia A. Getting a PAN is a simple process and can be done online even from Canada. Read 'How to get a Pan Card from abroad' on Nri Information. You can demat the shares you own by opening a bank account at many banks that cater to NRIs. Even State Bank of India has offices in Canada. You can select the bank of your choice. Some banks will even help you get your PAN just to get your demat account business. Regarding shares that your father in law gifted to you: Your father could open a demat account for his shares and then transfer to your account. He could always close his demat account once shares are transferred. If your father in law is reluctant to get a demat account, then I believe you may have to first get the paper shares transferred to your name and this will involve filling out appropriate forms and sending to the companies that issued the stocks to make the required changes. Your bank where you eventually open a demat account should also be able to guide you in this regard. Another option would be to use a stock broker in India (called share brokers) to handle the transfer of shares for you as they have the necessary forms, however I would be careful before handing over the actual paper stocks. I don't see the requirement that one must have a bank account to sell a flat in India. However you will need one to deposit the proceeds from the sale of your property. You can open an account from Canada without any problem with most banks in India. Some Indian banks have branches in Canada also and many others offer online bank account opening facilities. You will need to open a NRO (non resident ordinary) account which is where Indian Rupees can be deposited.