Indian nationals and people of Indian origin are spread across the world, especially for employment. Most of them regularly send money back in India to their loved ones or invest in the Indian market. As a result, India is the top receiver of remittance in the world. Indian economy is booming and attracting high FDI (Foreign Direct Investment) inflow. Considering this, NRIs are also looking for various investment avenues in India. To invest in the Indian stock market, NRIs need to open a Demat account. NRI Demat account is an investment account opened by NRIs and PIO & OCI cardholders. A Demat account is mandatory for NRIs who wish to invest in the stock market in India as well as mutual funds, ETFs, and convertible debentures. Here are the best Demat accounts for NRIs in 2021 to invest in the Indian market.
Can NRI hold a Demat account in India?
Similar to resident Indians, Non-Resident Indians or NRIs can hold a Demat account in India to trade in equity. You need to adhere to the rules of the Foreign Exchange Management Act (FEMA) to open a Demat account for NRI in India. NRIs need to get Portfolio Investment Scheme (PIS) licences from a designated bank to operate a demat account for investing in the Indian market. Demat accounts are maintained by a depository company.
A Demat account stores securities in an electronic format, and hence there is no need for physical share certificates. A Demat account for NRI is available in two forms – NRE Demat account and NRO Demat account. To invest in Initial Public Offers (IPOs) on repatriable basis, you need to open an NRE Demat account and an NRO Demat account is used for investment in IPOs on a non-repatriable basis.
Best Demat accounts for NRIs (Non-Resident Indians) 2021
Here is the list of 5 best Demat accounts for NRIs:
|Ranking||NRI account provider|
|4||Sharekhan by BNP Paribas|
Zerodha Demat account for NRIs
Zerodha is the largest and one of the most trusted discount brokers with a user base of more than 35 lakh. Zerodha is very popular for NRI services. It has dedicated customer support teams to onboard NRI customers and provide them with the best possible service in the industry. While the brokerage is Rs. 20 for resident Indians, it is Rs. 200 per executed order for NRI customers due to additional formalities. This fee is very nominal as compared to other traditional brokers like Angel Broking and Sharekhan. Zerodha is considered one of the best Demat accounts for NRIs.
Key features of Zerodha Demat account for NRI customers
- Zerodha is a partner of HDFC Bank, Axis Bank and yes Bank for NRE account opening.
- There is no restriction for NRO accounts.
- Delivery is totally free.
- No minimum cap of brokerage per transaction.
- Provides a margin from 4 to 15 times.
IIFL Demat account for NRIs
IIFL or India Infoline Financial Limited is one of the biggest full-service stockbrokers with a large number of clients. India Infoline has been in the brokerage industry for more than 3 decades. IIFL Demat account is ideal for NRIs who need guidance and research to make informed investment decisions.
Key features of IIFL Demat account
- Research advisory.
- Demat account opening through video validation.
- Variety of investment products.
- Dedicated relationship manager.
- Wealth and financial management.
ProStocks Demat account for NRIs
Based in Mumbai, ProStocks is a discount broker that offers Demat accounts for NRIs. customers. The brokerage is Rs.100 per executed order.
- 6 different charts with real-time updates at various time frames like minute, hour, day, week, month half-yearly and yearly basis.
- Intraday trading backed by more than 150 technical studies.
- Alerts with customization are set for price and percentage based triggers.
- Any number of scrips can be added to the market watch.
Sharekhan NRI Demat account
Sharekhan is one of the leading online brokerage companies in India with a large number of active clients. In terms of the customer base, Sharekhan ranks 3rd after Zeridha and ICICI Direct. Sharekhan has a huge network of branches and franchises over 550 locations in India. The company operates through more than 1800 offices and also has a presence in the UAE and Oman.
Key features of Sharekhan NRI Demat account
- Integrated RBI approved bank account with HDFC Bank.
- Free fund transfers from banks to trading accounts or vice versa.
- Free online training for beginners and advanced traders.
- One of the finest trading platforms in India (Trade Tiger)
Kotak Securities NRI Demat account
Kotak Securities is a brokerage arm of Kotak Mahindra Bank. As it is a Kotak Bank linked demat account, fund transfers between bank account and trading account are automatic. As compared to Zerodha and ProStocks, brokerage charges are high.
Key features of Kotak Securities Demat account
- It offers 3 in 1 Demat account for seamless transfer of funds.
- All investment avenues under one roof.
- Funds transfer can be done via Kotak netbanking gateway.
- Detailed research report and recommendation.
- Online chat facility with support team.
How to open Demat account for NRIs
NRIs can open a Demat account and trading account with stockbrokers or banks registered with NSDL and CDSL. For that you need to have either NRE or NRO bank account. You need to select either a repatriable Demat account or a non-repatriable Demat account depending on your. NRIs can open a Demat account online or offline. Here are the steps to open Demat accounts:
- Download and fill the Demat account opening form.
- Attach all the required documents.
- All documents should be self-attested and notarized by the Indian Embassy/ Consulate or any other competent authority.
- Submit the filled form with documents to depository participants or stockbrokers.
Also Read: PINS Account: NRI Stock Trading in India
Documents required to open NRI Demat account
Here is the list of documents required to open NRI Demat account:
- Duly filled account opening form signed by the applicant
- PIS (Portfolio Investment Scheme) letter of approval issued by the RBI to NRI applicant
- Photocopy of valid Indian passport
- Photocopy of visa
- PAN card
- Passport size photograph
- Canceled cheque of NRE or NRO account
- Proof of respective bank and depository accounts
- Overseas address proof such as utility bill, bank statement, driving license, government-issued identity card
Living away from India, it is not easy for NRIs to open a Demat or Trading account and make the right decision about investment in India. At SBNRI, we understand that there are many obstructions faced by NRIs while investing in India. You can download SBNRI App to connect with our experts and get end-to-end assistance related to an NRI investment.
Yes, NRIs are allowed to hold shares in India by participating in equity investments. They can also receive shares in the form of a gift or purchase in the capacity of resident Indian. To participate in Indian equity market, NRIs will require an NRI Bank account, NRI trading account and NRI Demat account.
The process of NRI account opening is partially online. Fill the account opening form online, download the PDF file, print it, sign it and send it to the bank.
To invest in the Indian stock market, NRIs require 3 accounts:
– PIS enabled NRI savings bank account (NRE/NRO account)
– NRI Demat account
– NRI trading account
NRI Demat account charges include:
1. Demat account opening fee
2. Demat account AMC (Yearly)
3. Debit transaction charges
4. Other charges i.e. pledge fees, fees for updating personal info
Yes, NRIs can invest in Equity Traded Funds in India. They can invest on both repatriation basis and non-repatriation basis.