428. Change in Nationality

effect on Demat Accounts

Questions: Hi, I am an Indian citizen. Can i still continue to have the same demat account and do trading after i get a foreign nationality? Thanks Jay Answer: Non-residents cannot continue stock trading in India using their resident demat accounts that they held prior to becoming a non- resident. You should notify your bank about your non-resident status and take steps to close the demat account you held as a resident in India. There are two options that you have: 1. Sell the shares Or 2. Transfer the shares from your resident demat account to a NRO demat account. In case you decide to sell the shares, the proceeds from the sale would have to be first deposited in a NRO account and then, can be repatriated abroad. Repatriation would require you to get a certificate from a chartered accountant in the prescribed format and currently up to one million US dollars are allowed per calendar year. Please note that as a non-resident, while you can purchase shares from the primary market through your NRO demat account, you cannot purchase any more shares from the secondary market. For trading in the secondary market, you now need to open a Portfolio Investment Scheme account, this type of account is commonly referred to as PINS account. Regardless of with which bank you decide to open a PINS account, a person can only have one such account. Contact your current bank and they should be able to advise you on the easiest method of transferring your stocks and opening demat account.