NRIs can open a demat account with any Depository Participant in India. NRI’s needs to mention the type (‘NRI’ as compared to ‘Resident’) and the sub-type (‘Repatriable’ or ‘Non- Repatriable’) in the account opening form. The salient features of demat account for NRIs is as following:
- No permission is required from RBI to open a demat account. Holding securities in demat only constitutes change in form and does not need any special permission.
- NRI must open separate demat accounts for holding ‘repatriable’ and ‘non-repatriable’ securities.
- NRIs can hold joint demat accounts. For the purpose of determining ownership of holding, the first holder is taken into account. Hence, even though other joint holders may be person residing in India, the sale proceeds of such securities can be repatriated in case the first holder is permitted to repatriate funds.