Q156. How can NRIs - OCI - PIO holder open demat account in India

Question: I have looked around for this information and found various versions. Can you tell me in simple language if an Nri can even open stock trading in India account which is called demat. My question is can nri open this type of account and what documents are required to open demat account in Indi

Answer: Thank you very much in advance. look forward to your answer. Raju Shah A. Under the Portfolio Investment Scheme Non Resident Indians (NRI's)' and 'Person of Indian Origin (PIOs)' can purchase and sell shares and convertible debentures of Indian Companies on a recognized stock exchange in India by routing all transactions of purchase or sale through their account held with an authorized Depository Participant (DP) which could be a bank.

Your selected bank where you wish to open a demat account will maintain a record of all transactions done by you under this investment scheme. To start off you would have to fill in the required Portfolio Investment Scheme form to open a demat account. Forms will be available with the bank or Depository Participant of your choice.

A sample form from Axis bank can be viewed HERE. (Form is provided only for informational purposes as forms change periodically and different banks may have their own forms) Depending on your requirements, you can open either a repatriable or non repatriable demat account. Most Nri's would have both. For clarification, funds which can be taken abroad need to be kept in a separate bank account, i.e.

NRE Bank account. Normally funds brought in from abroad are permitted in NRE accounts. Investments made from such funds can be repatriated. Investments that can be repatriated are kept in a repatriable Demat account.

Non-repatriable funds (those which cannot be taken abroad) have to be kept separate from repatriable funds in a separate bank account which is usually a NRO Bank account. Additional documents required when filling PIS form are: Passport-size photograph Proof of identity, address and date of birth DP (Bank)-client agreement on non-judicial stamp paper PAN Card A point to note is that OCI and PIO holders cannot operate demat accounts online but must go through their chosen broker. In simple terms you give the instructions and they are carried out by your broker in India who has to follow the applicable rules and regulations that affect Nri demat accounts.

Once you contact a bank of your choice, I am sure they will be able to provide you with the latest information and help you set up your demat account.