The Indian Stock Market has always been an attractive destination for investors globally. Any NRI, whether PIO or OCI seeking to create wealth through stocks and mutual funds investments, can’t just ignore the Indian Stock Market.
The initial step to investing in Stocks, IPOs, Mutual Funds and more in India is to open an NRI Demat account.
The NRI Demat account is just the same as for any Indian investor. The functionality is the same; it can be opened and operated as any Indian resident would use it. Even the NRI Demat account charges are the same.
The only difference is that while opening the Demat account, the investor has to mention which type of Demat account is NRI ( Repatriable or Non-Repatriable) or Indian Resident.
How Does an NRI Demat Account Operate?
An NRI Demat account holds securities in electronic form, just like a bank account. It holds mutual funds, ETFs, bonds, and equities instead of money.
The Demat account makes trading easy, fast and secure, but what’s difficult is to find the best Demat account in India for an NRI. Investors can invest their money by creating this account.
Let’s fall back to the main question;
What is the Process to Open an NRI Account?
Once you have figured out the type of Demat account you want to open, you need to follow these steps to open an NRI Demat Account:
- Before opening an NRI Demat or Trading account, keepings the documents required to open an account. The most crucial papers you would need are a PAN card, a Reserve Bank of India issued Portfolio Investment Scheme (PIS) permission letter and NRI bank account details.
- NRIs need to get the documents verified by the Indian Embassy in the country of their residence. If this is not possible, then the verification can be done by any competent authority as per SEBI’s regulation.
- Open the stockbroker’s website offering the best Demat account for NRI. Choice India provides a free Demat account opening facility for eligible NRI investors.
- Look for the ‘Open a Demat Account’ option and click on it. You can also open a free online trading account other than a Demat account.
- Enter the required information and upload all the scanned copies of the documents required.
- Post document submission, the stockbroker will further process your application and share the welcome mail containing your Demat account number post-approval.
What are the Required Documents for the NRI Demat Account?
The following documents are necessary to open an NRI Demat account in India.
- A filled up account opening form that all the account holders have signed.
- Reserve Bank of India issued a Portfolio Investment Scheme letter of approval for the NRI.
- Cross written signature passport-sized photographs of the account holders.
- PAN card (Scanned Copy) of all holders.
- Proof of address of the overseas residence for all the holders.
- NRE/NRO Bank’s cancelled cheque of the same account specified on the form.
- Photograph and signature the nominee to use the nomination facility of the Demat account.
NRI Demat Account Charges
Like the Indian resident’s Demat account, the NRI Demat account also attracts costs. The central depositories and the broker charge these Demat accounts and transaction-related fees. There are also governmental taxes that NRIs pay for their Demat account. The account charges for Demat account for NRI are as follows:
- One-time account opening fee: Every broker in India charges all of their customers, whether NRI or resident, a small one time account opening fee. This fee is for processing and opening a Demat account with that brokerage. It is a small one-time fee paid during the process of account opening.
- AMC: Maintaining or running a Demat account also incurs a charge. This fee is known as Account Maintenance Charges or AMC and it is charged annually. It is charged to Indian residents and NRIs alike by their brokerage. Whether you have an Indian resident Demat account or NRI Demat account, you must pay this fee.
- Debit transaction charges: A small fee is charged when a share is sold or withdrawn from an investor Demat account. This nominal charge is known as a Debit Transaction cost. Investors/traders need to pay this fee at every withdrawal of funds from their Demat account.
Choice India has got you covered when it comes to NRI Demat Account! Check out what we have to offer!