Can NRI use Demat account in India?

An NRI can use a Demat account in India just like resident Indians to hold the securities in electronic format. A Demat account is one of the mandatory requirements for an NRI to invest in the stock market.

An NRI is required to open a repatriable Demat account(NRE) or a non-repatriable Demat account (NRO) depending on whether an NRI is investing on repatriation or non-repatriation basis respectively.

The Demat account is required to hold:

1. The stocks purchased through the stock exchange in the capacity of an NRI;
2. The shares bought in the capacity of a resident Indian;
3. The shares applied in IPO;
4. Bonus shares;
5. Rights Issue; and
6. Shares received as a gift.