How does an NRI Demat account help non-resident Indians to invest in Indian securities?

NRI demat account to allow non-resident Indians to invest in Indian securities listed on the stock market. Through an easy and hassle-free account opening process, non-resident Indians settled abroad can invest in Indian stocks, mutual funds, and ETFs. The following article explores the meaning of the NRI demand account, its benefits, and ways NRI can invest in Indian securities.

1. What is an NRI Demat account?

NRI Demat account like a normal demat account allows non-resident Indians to make easy and convenient investments in the stock market Indian securities. They can invest in Indian securities, engage in the buying and selling process, and even hold the stocks in electronic form. Authorized by the Reserve Bank of India, non-resident Indians can open the NRI Demat account in compliance with the Foreign Exchange Management Act.

2. Types of NRI demat account

● Repatriable Demat account:

Helping non-resident Indians to transfer funds abroad, the Repatriable Demat account makes the process of investment, deposits, and withdrawal easy and convenient. Non-resident Indians however need to connect their bank account with their demat account.

● Non-Repatriable Demat account:

The Non-repatriable Demat account restricts NRIs from withdrawing and transferring funds from stock market investment to their foreign bank accounts. The demat account must be linked with the non-resident ordinary bank account to open the Non-repatriable Demat account.

3. Benefits of opening an NRI demat account:

● Access to Indian securities:

Non-resident Indians can open free demat account and invest in Indian securities without any hassle. They can easily access their NRI demat account globally helping with hassle-free investments from anywhere in the world.

● Investment, withdrawal, and transfer of funds:

Non-resident Indians can invest in Indian securities and even transfer funds from their demat account to their ordinary bank accounts. By opening a Repatriable Demat account and a Non-repatriable Demat account, NRI can easily transfer funds without restrictions.

● Investment across different securities

NRIs can even invest in different types of securities including ETFs, mutual funds, bonds, and Indian stocks.

4. How an NRI demat account helps with investment into securities?

● Setting up an NRI demat account

By opening a demat account, non-resident Indians can invest in stock market securities. They must find a dedicated SEBI registered broker and provide various other documents like identity proofs to open the NRI Demat account.

● Placing a buy or sell order

After opening a demat account, non-resident Indians can place a buy or sell order through their trading account. After the transaction gets approved, the corresponding amount gets deposited or is transferred to the official bank account of the NRIs.

● Easy online access:

Non-resident Indians can even access their NRI Demat account and execution of online trades. They can open their demat account from anywhere track the movement of Indian securities and use various online tools for Stock market analysis.

Non-resident Indians however have to follow all the rules and regulations prescribed by SEBI for opening the NRI demat account and trading in Indian securities. Serving as an essential tool for Indian stock market investment, the NRI Demat account can make buying and selling securities seamless and secure.