Kritika Pandey asked on 31/03/2020

Can NRI have multiple demat accounts in India?

answered on 31/03/2020

Yes. An NRI can have multiple demat accounts. The usage of these multiple demat accounts can be understood under the concepts of:

  • Repatriation: NRIs must have separate demat accounts for repatriable (NRE) and non-repatriable (NRO) shares which means if you invest through your NRE account, the money you receive after selling the shares/stocks is completely and freely repatriable whereas investments through NRO accounts will have to be initially settled by paying applicable taxes and then they can be repatriated. NRE accounts are used to buy shares (equity) on a repatriable basis and NRO accounts are used to invest in shares (equity and derivatives) on a non-repatriable basis. The NRE/NRO Accounts can be used to invest in the primary market without PIS (Portfolio Investment Scheme) (eg: IPOs, Mutual Funds)
  • Market Variation: In order to invest in the secondary market you need a separate bank account to hold your investment funds that will be linked to the Portfolio Investment Scheme (PIS). This account can not be your regular NRE/NRO account and this account will be linked to a demat account to hold your shares as directed by RBI.

Can NRIs open demat accounts online?

Demat Account is a part of the trading account which NRI opens to trade in the Indian stock market online. Demat Accounts are used to hold the shares in electronic form.


Open NRI Demat Account


As of now no bank offers to open a demat account online. But you can access the bank websites and third party service providers such as Zerodha, where you can apply for a demat account and send the required documents to them via courier.

If you choose to not go through with any third party website, you either need to visit the bank branch in India or send the required documents to the branch in India via courier. To browse through the list of documents, click here.



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