Chittorgarh.com Logo
Loading...

Can NRI hold shares in India?

Save over 60% on Brokerage

We can help you save between 60% to 90% brokerage fee & taxes. Contact us today...

An NRI can hold shares in India received in the form of a gift, purchased in the capacity of resident Indian, or by participating in equity investments.

To participate in Indian equity markets, an NRI will require an NRI trading account, NRI Bank Account, and NRI Demat account. Based on whether an NRI wishes to trade with or without repatriation benefits, the NRI accounts can be opened as NRE (to trade on repatriation basis) or NRO (to trade on a non-repatriation basis). To trade on a repatriation basis, an NRI will also require PIS approval from RBI. The PIS approval to trade using NRO accounts is optional based on the kind of services offered by the broker. Once, all the required accounts are set up, an NRI can start trading in India markets and hold shares in their Demat account as per their will.

An NRI can also hold shares purchased in the capacity of resident Indian or received as a gift. These shares can be held in the resident Demat account in case an NRI has no intention of making any fresh investments. However, it is preferred to sell off such shares or gift to someone to avoid any issues rather than holding a resident Demat account.

Topic:


Comments

Add a public comment...