InvestorQ : I am an NRI living in London for the past 6 years. Can I open a demat account in India?
Rutuja Nigam made post

I am an NRI living in London for the past 6 years. Can I open a demat account in India?

Answer
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Aashna Tripathi answered.
2 years ago


You can surely open a demat account with any registered depository participant in India. No permission is required from RBI to open a demat account. However, credits and debits from the demat account may require general or specific permissions as the case may be, from designated authorized dealers. There are some very basic formalities that you will have to go through which includes mapping your NRO account / NRE account to your DP account and also keeping our Authorized Dealer (AD) in the loop for the entire process.
But what if you already had a demat account when you were resident Indian? As an NRI you cannot continue to operate your resident Demat account. Your existing demat account, which holds shares that you purchased while you were a resident Indian, will have to be closed and you would need to transfer the shares to an NRO demat account via offline transfer. You can continue to hold these shares or sell them. If you sell them, the proceeds are credited to the NRO savings account and there are restrictions on repatriation. That is, you can repatriate up to USD 1 million per the calendar year (including all other capital account remittances) but you would need a certificate from your chartered accountant as mentioned earlier.