What is the difference between NRI Demat and Trading Account?

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An NRI has to open 3 accounts to trade or invest in the Indian stock market. This includes:

The NRI Demat Account is used to hold securities in electronic format. The demat account is similar to a bank account but instead of holding money, it holds securities (i.e. Shares, Mutual Funds, ETFs, NCDs etc.).

The NRI Trading Account is an account opened with the stock broker. It facilitates the transactions at the stock market. The stock market investors in India can buy or sell shares only through the stock brokers.

Here are a few key differences between NRI Demat Account and Trading Accounts:

NRI Demat Vs Trading Account

	NRI Demat Account	NRI Trading Account
Purpose	Account to hold securities in electronic format	Facilitates buy/sell transactions in the stock market
Account opened with	Depository - CDSL or NSDL	Stock Broker i.e. Zerodha, ICICI Securities
Charges	Debit transaction charge, pledge charges, AMC and GST Tax	Brokerage and taxes (STT, Exchange Transaction Charge, GST, SEBI Fees and Stamp Duty)
Account Types	NRI Repatriable (NRE PIS) NRI Non-Repatriable (NRO Non-PIS)	NRI Repatriable (NRE PIS) NRI Non-Repatriable (NRO Non-PIS)
Joint Account	Yes	Yes
Online Account	Yes	Yes
Nomination	Yes	Yes
Delegation through Power of Attorney	Yes	Yes
Charges when account is not in use	Yes, Annual Maintenance Charges (AMC) is charged irrespective to uses	No
Required for Derivatives Trading in Equity, Currency	Yes for Equity derivatives (Due to mandatory physical settlement of stocks on expiry)	Yes

Note:

Demat and trading account charges (i.e. AMC, brokerage, demat debit transaction charges) varies by broker to broker.
A broker requires Demat Account Power of Attorney (PoA) to withdraw the shares from demat account when customer sells them online.

What is the difference between NRI Demat and Trading Account?

NRI Demat Vs Trading Account

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