Demat Account for NRIs – Rules, Process & Best Practices in India (2025 Guide)

Demat Account for NRIs – Rules, Process & Best Practices in India

India’s growing economy and vibrant stock market offer attractive investment opportunities—not just for residents but also for Non-Resident Indians (NRIs). To invest in Indian shares, mutual funds, or IPOs, NRIs need to open a Demat account that complies with RBI and SEBI regulations.

In this blog, we’ll walk you through the rules, steps, and best practices for NRIs looking to open and manage a Demat account in India.

Can NRIs Open a Demat Account in India?

Yes. NRIs can open a Demat account in India, but the process is different from that of resident individuals. NRI accounts are governed by the Foreign Exchange Management Act (FEMA) and require additional compliance steps.

Types of NRI Demat Accounts

1. NRE Demat Account

• Linked to a Non-Resident External (NRE) bank account

• Repatriable: Funds and profits can be transferred abroad

• Used for investing in stocks on a repatriation basis

2. NRO Demat Account

• Linked to a Non-Resident Ordinary (NRO) account

• Non-repatriable (profits cannot be freely taken abroad)

• Ideal for managing Indian income like rent or dividends

Key Documents Required for NRIs

• PAN Card

• Passport (with visa/residency permit)

• Overseas address proof

• Indian address proof (if applicable)

• NRE/NRO bank account proof

• FEMA declaration & PIS (Portfolio Investment Scheme) approval (if applicable)

• Passport-size photo and signatures

Step-by-Step: How NRIs Can Open a Demat Account

Step 1: Choose the Type – NRE or NRO

Select based on whether you want repatriable or non-repatriable funds.

Step 2: Open an NRE or NRO Bank Account

This is mandatory. Most Indian banks offer online options for NRIs.

Step 3: Fill Out the Demat Account Application

Specify NRI status and submit documents.

Step 4: Complete KYC and Submit FEMA Declaration

This includes in-person or video verification depending on the broker.

Step 5: Get Approval and Start Investing

Once verified, the account is activated within 7–10 working days.

Investment Options for NRIs

• Equity shares

• Mutual funds

• IPOs

• Bonds and ETFs (where allowed)

• Government securities

Note: NRIs cannot invest in certain sectors and derivatives (F&O), as per SEBI guidelines.

Why Choose One Solution for Your NRI Demat Account?

At One Solution, we help NRIs invest in India with confidence:

• End-to-end assistance with NRE/NRO Demat setup

• RBI/FEMA compliance guidance

• Paperless document upload and video KYC

• Fast processing and dedicated NRI support

• Low brokerage and transparent pricing

Final Thoughts

Opening a Demat account as an NRI may require a few extra steps, but the opportunity to invest in India’s booming market makes it worthwhile. With the right partner like One Solution, the process is simplified and fully compliant.

Invest back in India, from anywhere in the world—open your NRI Demat account with One Solution today.