These days, the number of NRIs planning to invest in the Indian stock market is increasing at a fast pace. The stable economy and strong political environment, combined with the bullish NSE and BSE index along with reduction in bank interest rates on investments only has prompted NRIs to look at the stock market. With modern technology, smart gadgets and high speed net access easily available, investing in the Indian stock market from abroad, without talking any one’s help back in India, is no more a dream, but a grand reality.
Opening up of NRI Demat Account
It is important for the NRIs to open up a demat account according to the laws that govern the Indian financial investment market. There is no need for the person to come to the country in person and visit the local branch for opening up his Demat account. Rather, he can simply contact the broker office through their toll free number and check out the Demat NRI account services that are offered by them. Several private and government Indian banks are also found to offer demat accounts targeting both locals and NRI investors. Some also have their branches abroad where an account can be opened and trading can be done in Indian stocks, currencies and bonds, etc. Opening up the Demat account is sure to help the person to de-materialize the physical shares without much effort.
Things to consider
NRIs eager to open up NRI Demat account should take into consideration several aspects. One major benefit of having an account is eliminating the risks that are otherwise associated with holding of physical certificates. Upon registering for the Best Demat Account in India with a reputed brokerage provider, the investor can enjoy getting updates and regular statements regularly on his email that he can check from anywhere, even when on the move using his smartphone! This actually helps him to monitor his portfolio and be well informed, so as to take the right decisions. Few brokers are also found to offer option to sell or buy single share. No fixed limit is present on the minimum amount.
This is another consideration to be made when opening up NRI Demat account. Basically, these accounts are stated to be of two types, namely Non-Repatriable and Repatriable Demat Accounts. The latter is generally used for those shares that are bought using repatriable funds. The sales proceeds of his account are credited to individual NRE bank account.
On the other hand, the other account type is used for securities and shares purchased with non repatriable funds. Sales proceeds of such shares are credited to the NRO bank account.
While opening this account, most Indian banks are found to offer their customers with securities transfer option, which is done by discussing with the bank representative. There are several banks providing facilities to secure online transfer. This is done by logging onto the bank site. The other option available will be to use IVR mode (for international banks) by calling up their local customer care toll number.