A Demat account is mandatory for investing in the stock market in India for residents and NRIs. An NRI is an individual who resides in a foreign country for 183 days or more in a financial year. NRIs  can trade in bonds, stocks, IPOs, mutual funds, and more,  through NRE/NRO Demat account. All NRI transactions are governed by FEMA regulations.

What does a Demat account for NRIs do?

The Indian stock market offers lucrative investment opportunities to global investors. Seeing the growing interest from NRI investors to invest in the Indian market, several stockbrokers in the country have started catering to the NRI segment. Using a Demat account, one can trade online securely.

However, an NRI Demat account differs from a Demat account available to general Indian investors. For NRIs, the type of Demat accounts offered are repatriable or non-repatriable

You can open both NRE-Demat and NRO-Demat accounts with Angel One. Understanding which type of NRI Demat account is suitable for you is essential to select the right option. Below are some points to remember.

  1. Permanent NRI, without any residential holding in India, should open an NRE account that allows fund transfers from Indian bank accounts to foreign ones.
  2. If you are a Resident client and moved to another country without having any Resident demat account, then you can go for opening an NRE/ NRO account.
  3. If you are a Resident client and have moved to another country having any Resident demat account, you must close your existing Demat account and open an NRE/NRO Demat based on your need. Conversion of an existing Demat to an NRI Demat is not allowed. Once your new NRI Demat gets activated, you can shift your current holdings to the new account.  

Process of closing Resident account and opening NRI account – 

You must fill out two closure forms – one for a trading account and another for a Demat account.

  1. Firstly, you must close the residential trading account and open an NRO Demat and Trading account. 
  2. Once your NRE/NRO Demat account is open, a second closure form for closing the demat account is required to transfer all your existing investments to the new NRI Demat through DIS Slip. 

Account opening Procedure for NRI

All primary banks, stockbrokers and mutual fund houses, including  Angel One, offer NRI Demat Account opening services. Here is the account opening process followed for NRIs. 

Benefits of NRI Demat account for NRI:

There are certain advantages to opening a Demat account for NRI–

– You can invest in the Indian stock market online quickly and easily from anywhere in the world without the cumbersome process of physical documentation.

– The transactions are fast and efficient and are immediately reflected in the Demat account.

– There is a minimal risk of loss of physical documentation, forgery, delayed delivery and other such issues related to transactions with the NRI Demat account.

– The minimum capacity for the NRI Demat account is as low as one share.

– You can diversify your portfolio by investing in various investment instruments – ETFs, shares, mutual funds, convertible debentures, etc.

NRI Demat Account Charges

Even the best Demat account in India for NRI will attract costs. The central depositories and the broker charge these Demat accounts and transaction-related fees. There are also government taxes that NRIs pay for their Demat account. The account charges for Demat account for NRI are as follows:

1. Account Opening Charges

The Account Opening charge covers the processing and opening costs of one’s Demat account with the broker. It is a one-time fee paid at the initial level. A broker may discount or waive the charges to attract more customers. 

2. Annual Maintenance Charges (Yearly)

The broker typically attaches an annual charge to the Demat to maintain the account and offer related services. It is called AMC or Account Maintenance Charge. Depending on business policies, a broker may charge an AMC for the NRI Demat accounts. You may confirm the rate with your broker before opening an account.

3. Debit Transaction Charges

A small fee is charged whenever shares are sold or withdrawn from one’s Demat account. Depending on your broker, it can be a flat fee or a percentage of the trading volume. 

4. Brokerage Charges 

A brokerage charge is a commission the broker collects for executing transactions and offering specialised services to investor clients. The brokerage charges vary between brokers. Angel One charges its NRI customers a brokerage fee of 0.50% on transaction turnover or 0.05 per unit, whichever is lower for equity delivery. 

Calculating brokerage on NRI account 

Scenario 1:

Mr A bought 1000 shares of ABC Ltd at ₹9 each, and his brokerage was allotted 0.50% in delivery, and the upper limit was kept at ₹ 10/- then the calculation would be.

Delivery brokerage:

(Quantity*brokerage rate) i.e. 0.05*1000 = ₹50 ( Charged on Quantity as the traded price was less than the upper limit of ₹ 10)

Scenario 2:

Mr A has bought 1000 shares of ABC Ltd at ₹11 each and his brokerage was allotted 0.50% in delivery, and upper limit was kept on Rs. 10/- then the calculation would be. 

Total delivery brokerage: (0.30% on Transaction turnover) i.e. 0.50% of 11000 (1000 Qty*11 Traded price) = ₹55 ( Charged on Transaction turnover as the traded price was more than the upper limit 

Minimum Brokerage

As per the agreed brokerage slab, if generated brokerage is less than ₹30, you will be levied an additional brokerage up to ₹30 or 2.5%, whichever is lower in a particular segment. 

X has bought three shares of ABC Ltd at ₹100 in delivery, and the brokerage slab in delivery was agreed at 0.40%. 

Total Transaction Volume: 3*100 = ₹300

Brokerage calculation: 0.50% of ₹300 = ₹1.5

The maximum limit is 2.5% of turnover volume: 2.5% of ₹ 300 = ₹7.5

In the example above, the maximum turnover at 2.5% is less than ₹30. Hence the client will be charged ₹7.5 only. 

If 2.5% of the turnover is more than ₹30, then the client will be charged ₹30 only. (This would be applicable segment-wise.)


A Demat account is the only way to invest in the Indian  stock market for NRIs. However, opening and operating a Demat account for NRIs is different to that for resident Indians.