Like resident Indians, NRIs who wish to invest in Indian stocks need to open a Demat account. However, opening a demat account can be challenging for NRIs as they need to follow Foreign Exchange Management Act (FEMA) guidelines. When applying for a demat account, NRIs need to submit certain documents. Documents required for NRI demat account vary depending on the broker and demat account type – NRE or NRO.
What are the Documents Required for NRI Demat and Trading Accounts?
Listed below are the documents required to open NRI demat and trading accounts. It is important to notice the checklist contains basic and common documents. The broker will provide you with the exhaustive list at the time of application.
- Demat and trading account opening form
- Copy of your PAN card
- Copy of passport (with visa or work/ employment/ student/ resident permit page, address details, place of birth in India)
- In case of OCIs/ PIOs, valid passport and:
- Copy of OCI (Overseas Citizenship of India) card / PIO (Person of Indian Origin) card, or
- Place of Birth as India in foreign passport
- Proof of foreign address
- Indian address proof
- Cancelled cheque of the NRI (NRE/ NRO) savings account
- Account opening fee check + demat account opening fee check.
- Copy of PIS* (Portfolio Investment Scheme) letter issued by the bank
* PIS permission not required in case of investment on a non-repatriable basis.
Note:
- All documents need to be self attested
- All documents, other than the cheque, have to be attested by (Verified) by the Indian Embassy/ consulate/ court magistrate/ Judge or the local banker
- Only investors with NRO demat account can trade in futures and options along with additional documents
NRI Demat Account Types
NRE Demat Account: To invest on repatriation basis, NRIs need to open demat and trading accounts and link them with a PIS-enabled NRE savings account. This allows NRIs to invest in stocks, NCDs, bonds, etc.
NRO Demat Account: NRIs need to open demat and trading accounts and link it with an NRO savings account to invest in the Indian stock market on non-repatriation basis. Investors don’t need to seek PIS permission from the RBI to invest on non-repatriation basis. They can invest in stocks, bonds, NCDs, initial public offers (IPOs), bonds, and Esops (Employee stock ownership plans).
NRI investors can open two – NRE and NRO demat accounts to invest on repatriation and non-repatriation basis.
Best NRI Trading Accounts in India
Listed below are top trading account for NRIs in India along with charge comparison:
| Rank | Broker | Brokerage |
|---|---|---|
| 1 | Zerodha | Rs. 100 per trade (non-PIS), Rs. 200 per trade (PIS) |
| 2 | Angel Broking | – |
| 3 | ICICI Direct | 0.50% to 1.25% |
| 4 | HDFC Securities | 0.75% |
| 5 | Kotak Securities | 1.00% |
| 6 | Sharekhan | 0.50% |
| 7 | AxisDirect | 0.75% |
| 8 | IIFL Securities | 0.50% |
| 9 | Ventura | 0.40% |
| 10 | Choice Broking | 0.50% |
Living away from India, it is not easy for NRIs to open a NRI Trading account or Demat 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.
You can also click on the button below to ask any questions. Visit our blog and YouTube Channel for more details.
