A PIO having Canadian residency wants to open a joint account

Zerodha
1

Person is of Indian origin but have Canadian PR status and she lives in Canada.
Currently she is in India and wants to open a joint account with her mother who is Indian citizen and Indian resident.
After a joint account is opened they are going to get shares as gift by a close relative in their newly opened joint account and after that …there will not be any trading at all.

What is the best way to open this joint account…can this PIO/NRI hide the Canada residency and just open regular Indian resident joint account ?
if not possible than can the Indian resident mother become the primary and NRI becomes secondary in either or survivor type of account? if yes how will that work out ? I mean what documents are needed from NRI and can this ac be opened online ? @AkshayAtur @Kalpesh @lindo

2

It is both legally and ethically wrong for a PIO/NRI (who lives in Canada and holds Canadian PR) to misrepresent their residential status and open the wrong type of account. Doing so will also be in contravention of the FEMA regulations as well. If the PIO wants to be the ‘Primary’ holder {Trading account} - then an NRO account has to be opened.

Yes, this would be better. In case the shares are being gifted by a ‘Resident’. In such a case, it’s best to have the mother as the ‘Primary’ holder and the PIO/NRI becoming the 2nd holder {demat only}.

The account cannot be opened online, needs to be done offline. Below is the list of documents required from the NRI {Joint account}:

  1. PAN
  2. Passport
  3. Overseas address proof for the second holder
  4. FATCA Declaration,
  5. KYC form
  6. Signatures in the 2nd holder box in the Demat application form

Note: PAN, Overseas address proof and PAN need to be notarised.

Please DM the contact details so that I can ask our team to check and assist.

Hoping this clarifies.

1 Like
3

Ok so Indian resident/citizen mother will be primary …I get it …so this account will be considered normal Indian account even if there is non resident Indian (daughter) is joint holder?
if not how will this be account treaded as ?
if it is going to be treated as NRO - there will be higher charges ?

4

Yes, the account status will be dependent on the ‘Primary holder’. Here, the mother will be the primary holder and is a resident, the trading & demat account opened will be a normal ‘Resident’ account.

Charges will also be the same, that’s for a normal account and not as per NRI.

Let me know if this helps.