Demat Account for NRI- Offline

•5 min read•by Angel One

A demat account is mandatory even for NRIs who want to invest in the stock market. NRIs can choose between repatriable or non-repatriable demat accounts.

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A Demat account is mandatory for investing in the stock market in India for residents and NRIs. An NRI is an individual who resides in a foreign country for 183 days or more in a financial year. NRIs can trade in bonds, stocks, and more, through the NRE/NRO Demat account. All NRI transactions are governed by FEMA regulations.

What does a Demat account for NRIs do?

The Indian stock market offers lucrative investment opportunities to global investors. Seeing the growing interest from NRI investors to invest in the Indian market, several stockbrokers in the country have started catering to the NRI segment. Using a Demat account, one can trade online securely. However, an NRI Demat account differs from a Demat account available to resident Indian investors.

Account opening Procedure for NRI

You can open both NRE-Demat and NRO-Demat accounts with Angel One. Understanding which type of NRI Demat account is suitable for you is essential to select the right option. Below are some points to remember.

Permanent NRI, without any residential holding in India, should open an NRE account that allows fund transfers from Indian bank accounts to foreign ones.
If you are a Resident client and moved to another country without having any Resident demat account, then you can go for opening an NRE/ NRO account.
If you are a Resident client and have moved to another country having any Resident demat account with AngelOne, you can convert existing demat account to NRO demat. Below is the process of converting Resident demat accounts.

A. Trading account closure and conversion of resident Demat account. Documents required are-

1. Client must submit trading closure forms.

2. Conversion form

B. New NRO trading account form. Here is the account opening process followed for NRIs.

Benefits of NRI Demat account for NRI:

Quick access: The transactions are fast and efficient and are immediately reflected in the Demat account.
Diversifying portfolios: You can diversify your portfolio by investing in various investment instruments – shares, mutual funds, convertible debentures, etc.
Simplified settlement & operations: Once set up, transactions in electronic form are faster, settlement is streamlined (vs dealing with physical share certificates) and the administrative burden is lower.

NRI Demat Account Charges

Annual Maintenance Charges (Yearly)

The broker typically attaches an annual charge to the Demat to maintain the account and offer related services. It is called AMC or Account Maintenance Charge. Depending on business policies, a broker may charge an AMC for the NRI Demat accounts.

Annual maintenance charges (charged annually)

INR 60 per quarter from 2nd year onwards.

Debit Transaction Charges

A small fee is charged whenever shares are sold or withdrawn from one’s Demat account

Transaction charges for sale (Debit) & Inter-settlement Debit per transaction	Charges Rs. 20
Note: a) Depository Participant Charges: Rs 20 + GST, split as below Male: INR 3.5 (CDSL) + INR 16.5 (Angel One Charge) Female: INR 3.25 (CDSL) + INR 16.75 (Angel One Charge)
Auto square off charges	Charges Rs. 20
Pledge / Unpledge Creation/ Closure/Invocation ( Refer Note No. 6 b )	Charges Rs. 20
Demat/Remat (Per Certificate) Additional DIS requisition Additional Statement Physical Contract Note	Charges Rs. 50
Cheque Bounce Charges	Charges Rs. 350
DDPI Charges	Rs. 100 + GST

Brokerage Charges

A brokerage charge is a commission the broker collects for executing transactions and offering specialized services to investors. The brokerage charges vary between brokers.

Angel One charges its NRI customers a brokerage fee of 0.50% on transaction turnover or 0.05 per unit on script for less than prescribed share price, whichever is lower for equity delivery.

***Disclaimer – Brokerage will not exceed the SEBI prescribed limit

Calculating brokerage on NRI account

Scenario 1:

Mr. A bought 1000 shares of ABC Ltd at ₹9 each, and his brokerage was allotted 0.50% in delivery, and the upper limit was kept at ₹ 10/- then the calculation would be.

Delivery brokerage:

(Quantity*brokerage rate) i.e. 0.05*1000 = ₹50 Charged on Quantity as the traded price was less than the upper limit of ₹ 10)

OR

Scenario 2:

Mr. A bought 1000 shares of ABC Ltd at ₹11 each, and his brokerage was allotted 0.50% in delivery, and the upper limit was kept at Rs. 10/- then the calculation would be.

Total delivery brokerage: (0.50% on Transaction turnover) i.e. 0.50% of 11000 (1000 Qty*11 Traded price) = ₹55 Charged on Transaction turnover as the traded price was more than the upper limit

FAQs

What is the penalty for NRI having resident demat account?

If an NRI continues to hold a resident Demat account after changing their residency status, it’s considered a violation of RBI and FEMA guidelines. While there isn’t a fixed penalty, such non-compliance may lead to the freezing or closure of the account, and in some cases, fines or legal action.

Is a NRI demat account taxable in India?

Yes, an NRI Demat account is taxable in India based on the type of investment and income earned. Taxes apply to capital gains, dividends, and interest income from shares, mutual funds, and other securities. NRIs can also claim benefits under the Double Taxation Avoidance Agreement (DTAA) to prevent paying taxes twice on the same income.

Which trading platform is best for NRIs in India?

The best account for NRI in India depends on your investment goals and preferences. They should also offer seamless integration with NRE/NRO bank accounts, low brokerage fees, and dedicated customer support to help you manage your portfolio easily. Leading brokers such as Angel One offer reliable NRI trading services with easy online access, global fund transfers, and portfolio tracking tools.

Which app is best for NRIs to invest in India?

Your NRI demat account should make it simple for you to manage your investments anytime, anywhere, ensuring both convenience and reliability in one place. The Angel Demat account app is one of the best platforms for NRIs to invest in India. It offers an easy-to-use interface, quick account setup, and access to a wide range of investment options like shares, mutual funds, ETFs, and IPOs.