Can I convert a normal trading & demat account to NRI status?

General
1

Can you explain the procedure for the same, if possible?

2

Open a new NRI demat account. Transfer all the holding to new demat account. Close the old demat account.

5

The recent change in regulations now allow one to convert an existing trading and demat from residential status to NRI status. You’ll not be required to close and open a new NRI account.However, the securities held in a resident account cannot be moved to an NRE account, one can move them only to an NRO account.

At Zerodha, if you need to convert a resident account to a non resident account, the following set of documents are required:

  1. Account Modification Form - this is because we’ll have to update the status of your KYC with the KRA.
  2. Foreign address proof
  3. Passport:
    a) In case of an Indian Passport: Copy of valid passport with the place of birth as India and a copy of valid Visa.
    b) In case of Foreign Passport: Copy of valid passport and copy of PIO/OCI card.
  4. Proof of Bank account (a cancelled cheque leaf of your NRO savings bank account to map the demat account)
  5. Copy of PIS account & permission letter/ NRO-Investment account letter to map the trading account.
  6. Copy of FEMA declaration for trading & demat
  7. FATCA Declaration Form
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6

Still doing KRA, I thought we moved to CKYC

7

@AkshayAtur
Further to your above clarifications could kindly clarify the following for me with regard to conversion of existing trading and demat from residential status to NRI status.

  1. I understand that there is no need to close the existing accounts and open fresh NRI status ones, rather the existing can be converted. Am i right?
  2. If i chose to map to an NRO account do i still have to open a PIS account? (I remember the news that NRO account can be used without PIS account)
  3. If yes, can i open the PIS account in State Bank of India or Union Bank of India? Do you have the charges for the same.
  4. Does the PIS accounts charge for each trade or just Annual Maintenance charges?
  5. If mapped to NRO account what are the Zerodha charges for Equity delivery?
  6. What are the taxes applicable for such investments?, if mapped to NRO account?

Thank you in advance for your clarifications.

8

Hi @allen_mathew,

Yes, you are right. The account needn’t be closed but can be converted.

We aren’t opening Non-PIS account. The PIS for NRO accounts have been redesignated as an NRO-Invest Savings account or NRO-Special savings account.

No, we support Axis, Yes Bank and HDFC for now. We’ll be partnering with other banks soon.

Yes, banks charge per contract note irrespective of the amount of the trade. Each bank has a specific charge to process these transactions. You can search for these charges on the banks PIS page. There is also an AMC for the PIS account, this differs from bank to bank.

Zerodha charges 0.1% or Rs. 200 as brokerage for NRI clients. Apart from the brokerage, other charges have been highlighted here

The taxes applicable are the same as resident accounts, the TDS (Tax deductible at source) for
Short-term capital gains (STCG) is at 15%. They are charged on those stocks sold within one year of acquisition.
Long-term capital gains (LTCG) is nil. These are for those equities that you have sold after holding them for a period of more than one year.

You can write to [email protected] for more details on the process to convert the account.

1 Like
9

HI Akshay
I have a resident Demat and trading account with ICICI. Will you be able to transfer it and open an Non-Resident trading account?