Eligibility for NRIs

• Non-Resident Indians (NRIs) are allowed to open Demat accounts in India.
• The account can be opened with a SEBI-registered Depository Participant (DP).
• Proper documentation is required to establish NRI status.
• Both NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts are permissible for linking.

Types of Demat Accounts for NRIs

• NRIs can open Repatriable Demat accounts (linked to NRE bank accounts).
• Non-Repatriable Demat accounts can also be opened (linked to NRO bank accounts).
• Both types allow holding securities in electronic form.
• Choice of account depends on the repatriation needs of the NRI.

Documentation Required

• Valid passport and visa copies are needed.
• Overseas address proof and Indian address proof must be submitted.
• PAN card is mandatory for KYC compliance.
• Recent photographs and duly filled account opening forms are required.

Regulatory Compliance

• NRIs must comply with RBI, FEMA, and SEBI guidelines.
• Portfolio Investment Scheme (PIS) permission from a designated bank is necessary for equity investments.
• All investments and transactions are subject to regulatory reporting.
• PIS account details must be linked to the Demat account for equity trades.

Operation and Restrictions

• NRIs can invest in shares, debentures, mutual funds, and bonds.
• Certain sectors may have investment restrictions for NRIs.
• Joint accounts with another NRI or resident Indian (with conditions) are allowed.
• All transactions are monitored for compliance with Indian laws.
• Separate Demat accounts are needed for repatriable and non-repatriable investments.