Change of resident type

General
1

I’ve huge investment in the market (Equities and MFs) through different brokers. Now I’m planning to shift The US for 3 Yrs and have no plan to come to India in between.
I’m planning to leave my account idle (No further investment, No disinvestment, No trading) for upcoming three years, even I won’t be bothered to log in the accounts and will use these accounts only after coming back to India.
In this situation, Do I need to change my status as NRI or its a compulsion from Govt side?
What if I don’t change my status?
Thanks in advance @nithin

2

Just Link All your accounts with Aadhar card and Be relaxed Nothing gonna happen everything will be okay.

Until your broker sell all your Holdings without your permission this is the only Drawback.

Few days back I log into a very old account which was last Used in 2012 to Link with Aadhar number and all Holdings are still safe no problem at all.

3

Thanks… But I just want to know about legalities of Not Changing the resident type.

4

It’ll be better if you change your status to NRI and that can be done only after 180 days after leaving India.

5

Thanks… So do I need to come back to get my status changed or it can be done online and what is the procedure?

6

Hi Shivam,

Documents required to convert the existing resident trading and demat account to NRI Account:

Account Modification Form – To update the Bank details and Overseas address in the CDSL.
Copy of FEMA declaration
FATCA Declaration Form
Trading Closure Form for closing the resident trading account.
New Trading Application Form.
Notarized copies of self- attested PAN card, Indian Address Proof, Foreign address proof.
Copy of passport: In case of an Indian Passport: Notarised Copy of valid passportwith place of birth as India, Copy of Valid Visa; In case of Foreign Passport: Notarised Copy of Valid passport, Copy of PIO/OCI card.
Proof of Bank account ( a cancelled cheque leaf of your NRO savings bank account).( Either Axis, Yes or HDFC Bank
Copy of PIS account / NRO-Investment account letter to map to the trading account(Axis, Yes or HDFC Bank)

PS: content courtesy: https://zerodha.com/z-connect/zerodha/open-an-account/nri-trading-on-indian-stock-exchanges

Cheers,
Lindo

7

Thanks… It says all about how to open an account and how to trade But I don’t want to trade or Invest anymore for next three years.
So is it necessary to change status to NRI even I don’t want to invest or trade in share market?

8

I suppose you become nri only after six months staying abroad, widout coming back to ind regardless of ur purpose of leaving

You will be resident again only if you have stayed in ind for six months consistently

You can’t change ur status… It’s automatic… In da passport, exit, entry stamps etc

9

Hi Shivam,

The onus of making necessary changes to your residential status vests entirely on you. If there’s a change in your residential status (as in this case), it’s best to change the status of your accounts, regardless of whether you intend to trade during the interim period or otherwise. That would be the right thing to do. But again as a broker, it isn’t upto me to decide your residential status, similar to how when you are filing IT returns, you declare that all the information you’re providing is true to the best of your knowledge, your residential status is something that you’ve to declare on your own.

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