Are you an NRI wanting to invest in Indian stocks? You can open a Demat account remotely from any country, but the process is different from residents. Here is the complete 2026 guide.
Eligibility
You are NRI if:
- Indian citizen living abroad 182+ days/year, OR
- Person of Indian Origin (PIO), OR
- Overseas Citizen of India (OCI)
Types of NRI Demat Accounts
NRI (Repatriable)
Linked to NRE bank account. Funds + profits can be repatriated abroad.
NRI (Non-Repatriable)
Linked to NRO bank account. Funds stay in India (with limits on repatriation).
What You Need
Mandatory
- PAN card
- Passport (all pages)
- OCI/PIO card (if applicable)
- Visa + residence proof of foreign country
- Address proof (India + abroad)
- NRE or NRO bank account
- PIS (Portfolio Investment Scheme) approval from RBI via designated bank
PIS - Key Approval
PIS (Portfolio Investment Scheme) is RBI's permission for NRIs to invest in Indian stocks. Process:
- Approach designated bank (HDFC, ICICI, SBI etc.)
- Open NRE or NRO account
- Apply for PIS letter
- Bank issues PIS approval in 2-4 weeks
- Share PIS letter with broker
Opening Process
- Choose broker offering NRI services (Zerodha, ICICI Direct, HDFC Sec)
- Download account opening form from broker
- Fill + attest documents at Indian Embassy OR notarize locally
- Courier to broker India office
- Broker verifies, activates account in 2-3 weeks
Investment Restrictions
- Can invest in: Equity (delivery only), mutual funds, IPOs, ETFs, bonds
- Cannot invest in: Intraday, F&O (partial), commodity, currency
- Maximum 5% holding in any listed company
- Cumulative NRI holding cap at 10% per company
Tax Rules for NRI
- Equity STCG (<1 yr): 20% + surcharge
- Equity LTCG (>=1 yr): 12.5% above Rs.1.25 Lakh/year
- Debt fund: Slab rate
- TDS deducted by broker at source
- DTAA benefits possible - check with CA
Zerodha for NRIs
Zerodha offers NRE/NRO Demat services. Offline process mostly. Check their NRI section for details and apply.
For resident friends/family, open free Zerodha account via button below.
