BAJAJ BROKING
Investing in the Indian stock market has become increasingly popular among Non-Resident Indians (NRIs) in recent years. With the growth and stability of the Indian economy, NRIs are keen to participate in the country’s financial markets. One essential requirement for investing in Indian stocks is a Demat account. A Demat account is an electronic account that holds shares and securities in a digital format, eliminating the need for physical share certificates.
Let us take a closer look at the process and guidelines for opening a Demat account for NRIs in India.
Yes, NRIs can open Demat accounts in India. However, several crucial points merit attention:
The Securities and Exchange Board of India (SEBI), the overseeing body for India’s securities market, sanctions the opening of Demat accounts for NRIs. While the process is straightforward, adherence to specific guidelines is essential. NRIs can open two types of Demat accounts: Repatriable (NRE) and Non-Repatriable (NRO) accounts.
An NRE Demat account is suitable for NRIs who wish to invest their foreign earnings in Indian securities and repatriate the funds back to their country of residence.
Here are the steps to open an NRE Demat account:
1. Choose a Depository Participant (DP): NRIs need to select a DP, which can be a bank or a financial institution authorised to provide Demat services. Research and select a DP that offers NRE Demat accounts.
2. Complete the Account Opening Process: Fill out the account opening form provided by the DP. Essential documents include a copy of the passport, proof of overseas address, evidence of Indian address, and PAN card. Additionally, verification of NRI status through an Overseas Citizenship of India (OCI) card or a Person of Indian Origin (PIO) card might be necessary.
3. Submission of KYC Documents: Successful fulfilment of the Know Your Customer (KYC) procedure mandates the submission of relevant documents such as a photograph, identity proof, address proof, and any supplementary documents stipulated by the DP.
4. Link Your NRE Bank Account: Link your NRE Demat account with an NRE bank account held in India. This will facilitate the transfer of funds for investment and repatriation.
An NRO Demat account is ideal for NRIs who wish to invest their income earned in India—such as rent, dividends, or pension—into Indian securities. Unlike NRE accounts, the funds in an NRO Demat account are non-repatriable, meaning they cannot be freely transferred abroad (beyond permitted limits).
Here’s a step-by-step guide to opening an NRO Demat account online:
Step 1: Select a Depository Participant (DP)
Choose a DP registered with NSDL or CDSL that offers NRO Demat account services and supports digital onboarding for NRIs.
Step 2: Mobile and Email Verification
Start the process by entering your Indian or overseas mobile number and email ID, and verify both through OTPs.
Step 3: KYC Document Submission via DigiLocker (or Upload)
Upload your KYC documents, including:
Self-attested PAN card
Passport copy
Overseas address proof
Indian address proof (if any)
NRI status declaration or visa/residency permit
Step 4: Provide Personal Information
Enter personal details such as your annual income, occupation, and marital status to complete your profile.
Step 5: Add Nominee (Optional)
You can nominate someone by entering their name, relation, and identification details. This step is optional but encouraged.
Step 6: Link Your NRO Bank Account
Provide your NRO bank account number and complete the verification. Upload a cancelled cheque as supporting proof if required.
Step 7: Signature Verification
Draw your signature digitally or upload a scanned image for identity confirmation.
Step 8: Submit Income Proof (For Derivative Segment Access)
If you wish to activate F&O trading, upload income proof such as your bank statement, Form 16, or salary slips.
Step 9: Liveliness Check
Capture and upload a live selfie for facial and liveliness verification.
Step 10: Aadhaar-based E-sign (If Applicable)
Complete your application with an Aadhaar-linked OTP e-sign, if available and valid for NRIs with Indian Aadhaar.
Opening a Demat account in India as an NRI offers several benefits that make it an attractive option for investing in the Indian stock market.
Let’s explore some of the advantages of having an NRI Demat account:
Additional Read: Income Tax Implications on Demat Account
Opening a Demat account for NRI in India is a viable option for those looking to invest in the Indian stock market. Choosing an NRE or NRO Demat account depends on your repatriation requirements. Ensure that you select a reputable Depository Participant and complete the necessary KYC process. By following the guidelines set by SEBI and complying with the regulations, NRIs can participate in the Indian stock market and potentially benefit from the country’s economic growth and investment opportunities.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://www.bajajbroking.in/disclaimer
Share this article:
Disclaimer :
The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.
The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.
Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.
BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.
Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For more disclaimer, check here : https://www.bajajbroking.in/disclaimer
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading