If you’re a NRI looking for an investment in Indian Securities market, opening a Demat is the prerequisite to start your investment. When planning your investment, you don’t need to visit India to open your Demat account. You directly contact an Indian stock Broker who offers NRI Demat Account services. Along with brokers, there are a number of Indian banks, both government and private banks providing Demat account facilities to NRI investors. Opening a Demat account you will be able to easily de-materialize your physical shares.
If you’re an NRI planning to open a Demat account in India, there are a few things that you need to bear in mind. The major advantage of opening an account is the elimination of risk associated with physical certificates. With a this account you get regular statements that will help you in periodic portfolio monitoring. Some brokers even offer an option to buy or sell a single share and there’s no fixed limit of minimum lot.
Before opening an NRI Demat Accounts, you might want to consider the type of account you can open. These accounts are basically of two types Repatriable and Non-Repatriable Demat Accounts. A Repatriable Account is used for shares purchased using repatriable funds and sale proceed of such accounts is credited to your NRE Bank Account. While, a Non-Repatriable Demat Account is used for shares and securities that are bought with non-repatriable funds, or when you were an Indian resident. The sale proceed of these shares are accounted to your NRO Bank Account.
When opening this account most of the Indian banks offer the option to transfer securities by speaking to the bank representative. While, there are a number of banks that have the facility for secure online transfer by logging on to the bank’s website. Another option is to use an IVR mode (in case of international banks) after calling up the local customer care number.
If you’ve decided to open this account just make an online search to find banks offering NRI Demat services. Check out the terms and conditions and read through the fine print. Also, don’t forget to post your queries in forums to ask real people about their experience. Since making an investment is a critical decision, so getting to know about it first will help you to choose wisely. Also, don’t forget to ask your friends and peers about their advice.
While most of the banks allow you to open a zero balance account, some may have a minimum balance limit. Check out the bank policies carefully and read reviews for quality of service. Once you’ve decided to open an account skim the opening form carefully and provide all details based on your original documents.
After you’ve opened an account, you can start buying and selling shares in dematerialized form. Also you need to keep in mind that most of the accounts are operated through a broker who will execute your buy/sell transaction on the exchange. So, if you’re an NRI looking forward to open a Demat account, just keep in mind the bank’s policies and don’t forget to take an expert opinion.