NRIs should promptly update their demat account status if there is a change in their residential status. Please do so to ensure compliance with regulations, which may affect their ability to operate the account smoothly.
Residents can hold a demat account jointly with another resident Indian, ‘either or survivor’ or ‘anyone or survivor’ basis, subject to the rules of the depository.
To open a regular demat account, residents need to provide proof of address, proof of identity, and other KYC (Know Your Customer) documents as per the requirements of the depository participant.
Transactions in an NRI demat account conducted in foreign currency. NRIs can hold securities in repatriable and non-repatriable forms depending on their investment preferences.
No, an NRI demat account cannot held jointly with a resident Indian. The NRI demat account is held jointly with another NRI.
Residents are subject to Indian tax laws, including capital gains tax on profits earned from securities trading. On the other hand, NRIs are subject to tax laws in India and their country of residence. Double taxation agreements may apply, allowing NRIs to claim credit for taxes paid in one country against taxes payable in another.
NRIs must follow the Reserve Bank of India’s (RBI) repatriation guidelines. The funds brought into India and invested through the NRI demat account can be repatriated, subject to certain conditions and regulations.
No, residents with a regular demat account do not face restrictions on the repatriation of funds. They can freely transfer money to and from their demat account without adhering to specific repatriation guidelines.
No, a regular demat account cannot convert into an NRI demat account. NRIs need to open a separate NRI demat account to comply with the regulatory requirements for managing Indian investments from abroad.