Many of my friends and relatives are abroad. Some people settled there permanently not knowing whether to return to India.
However, very few people make money there and return. You are looking for different investment opportunities in India. This article is for those who are looking for itBest Demat Account for NRIInvest in Indian stock market in 2023.
The Indian economy is booming and they don't want to miss the train. Given the irregularities in the real estate industry, they prefer regulated markets like the stock exchange.
But before we look at NRI's list of top demat accounts, let's clarify some terms.
Where else are Non-Resident Indians (NRIs) guilty?
It becomes easier to understand who is an NRI when we understand who is considered resident Indian.
A person is considered a resident of India if he or she resides in India for 182 days or more.
Therefore, if a person leaves India and has held an Indian passport for 182 days or more, they are considered a Non-Resident Indian (NRI).
However, I am providing a simplified version of the NRI definition as this article is not about the NRI status itself. I will write a separate article on NRI classification etc.
Can an NRI open a Demat account and trade on the Indian Stock Exchange?
Yes, NRI can open a Demat account and trade on the Indian Stock Exchange. For this they need an NRE or NRO bank account. However, NRIs are not allowed to trade in currencies and commodities. You are not allowedday-Tradingin the area of equity.
NSDL has someFrequently asked questions about NRI transactions。
NRI Demat Account via NRE Account Route (Non-Resident-External):
NRE is a bank account through which funds generated abroad can be transferred to and from India without restrictions. Interest earned on NRE accounts can also be repatriated domestically.
If you have an NRE account, you can only trade/invest in the stocks segment. To do this, you must also go through the PIS (Portfolio Investment Scheme) pathway.
You must provide the PIS approval letter from the nominated bank. This letter and other personal supporting documents like PAN etc need to be notarized by the Embassy of India in your country of residence.
All of these restrictions stem from a series of market manipulation incidents in 2008 in which foreign institutional investors (FIIs) allegedly used NRI funds to manipulate the market.
NRI Demat-Konto über NRO-Kontoroute (Non-Resident Ordinary):
An NGO account is nothing more than a simple savings bank account. People use them to deposit income from India like rent, dividends etc.
You can repatriate up to $1 million per fiscal year in an NRO account.
There is no PIS requirement to trade in the Indian stock market. With an NRO account, one can even trade in the futures and options (F&O) segment.
What documents are required to open an NRI Demat account?
The following documents are required to open an NRI Demat account:
- A valid Indian passport (if you hold a foreign passport, your place of birth should be India)
- Copy of visa
- Passport photo
- Canceled checks for NRE or NRO accounts
- Proof of the respective bank and custody accounts
- Proof of address abroad (copy of utility bill, driver's license, bank statement, etc.)
NRI Best Demat Account Ranking – NRI Best Stock Broker
Now that we understand the basics of the NRI Demat account, let's see which oneIndia's well-known stock brokersBest Demat Account for NRI.
Below is the list of top 5 NRI Demat accounts.
- 1. Zerodha NRI Demat Account
- 2. IIFL NRI Demat Account
- 3. Sharekhan NRI Demat-Konto
- 4. Prostocks NRI Demat Account
- 5. Box of Securities NRI Demat-Konto
Zerodha is always at the top of my list. I also have an account there and use it to trade.
Zerodha is famous for its NRI services. They have a dedicated team that looks after NRI customers exclusively and provides them with the support they need. Hence, Zerodha demat account is considered as the best demat account for NRIs.
For living Indians. Broker commission is 20 rupees/executed order.
No brokerage on all investments (yes, no brokerage if you buy but don't sell on the same day)
However, NRIs have many more formalities to complete, so brokerage fees are higher than for resident Indians.
For NRI the fee is Rs 200/completed order. That is, no matter you buy Rs. 1000 crore or Rs. 1 crore of shares, the maximum price is Rs. 200.
Although the fees are higher, I think it's just a minor change compared to other traditional brokers like Sharekhan and Angel Broking.
For example, if you buy 1 lakh rupees worth of shares, the brokerage commission for Zerodha is 200 rupees. However, if Sharekhan calculates 0.1% of the total value, that would be 0.1% XRs of 100,000,000 rupees. If you trade a larger volume, the price will still increase.
You can read the full informationHere is the Zerodha review.
Some outstanding features of the Zerodha NRI Demat Account are:
- Zerodha has partnered with Axis Bank, HDFC and Yes Bank to open NRE accounts. So if you are planning to have PIS, you should open an account with these banks
- There is no limit for NGO accounts
- Deploy Dragons -Best trading platform in Indiafrei
Zerodha offers a dedicated helpdesk for NRI customers. Please fill out the form below and the NRI sales team will get in touch with you and handle the rest of the process.(Video) [Must Watch] Still investing in India from your Resident Demat Account?
India Infoline Financial Limited (IIFL) is one of India's established full service stock brokers.
You have been in the brokerage industry for more than three years
Read the full textReview of Infoline Financial Limited India(IIFL).
Other outstanding features of the IIFL NRI Demat Account include:
- Sign up for a video verified account
- wide range of investment products
- Dedicated relationship manager
Sharekhan is the third largest stockbroker in India after Zerodha and ICICI Direct.
The key features of a Sharekhan NRI Demat account are:
- Integrate RBI-approved bank accounts with HDFC Bank
- Research reports and recommendations
- Portfolio tracking and safe trading
see detailsCommentary by Sharer KhanHere.
Prostokes is aDiscount stock brokers in MumbaiProvide an NRI Demat account.
Their fees are very competitive at 100 rupees per executed order. However, they are not as famous as Zerodha
Read all the information about it hereProstocks review。
Other notable features of Prostocks NRI Demat account include:
- No demat account and trading account opening fees
- No Annual Maintenance Fee (AMC) but you are required to pay a one time refundable deposit of 1,000 rupees
- Get to know your customers online
#5 Kotak Securities
Kotak Securities is the brokerage arm of Kotak Mahindra Bank.
Since it is a Demat account linked to a bank, the transfer of funds between bank account and trading account is smooth. However, their brokerage fees are very high compared to discount brokers like Zerodha and Prostocks.
you can readReviews by Kotak SecuritiesHere.
Other notable features of the Kotak Securities NRI Demat account include:
- Funds transfers can be made through the Kotak Bank Netbanking Gateway
- Investing/trading in IPOs, Derivatives and Bonds just got easier
- They provide research reports and recommendations
Best NRI Demat Accounts – Final Thoughts
You can take advantage of both NRE and NRO opportunities to invest in Indian stocks. However, make sure you only deal with reputable stockbrokers. Some brokers are not even aware of the NRI related issues.
If you are leaving India for a field assignment of 6 months or more, please convert your Savings Bank account to an NGO account and then link it to the Demat account.
In my experience, non-bank brokers usually provide a good service as brokerage is their core business.
If you find more of the best NRI demat accounts in this list, please let me know via the comments.
You may also want to read:
- 7 Brokers Offering Zero Brokerage Trading Accounts in India
- List of Best Demat Accounts for Day Trading
- Lifetime free demat and trading account in India
- How to transfer shares from one demat account to another demat account
- Best Banks to Open 3-in-1 Demat Account
- 7 Advantages of Demat Account
- Difference between demat and trading account
- Important factors to consider before opening a Demat account
- Is it legal to open multiple Demat accounts in India?
Best NRI Demat Account
easy to open 10,0/10
AMC Fees 9,0/10
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