Hello,
Is it possible for NRI to keep the existing Resident Demat account (along with holdings ) as it is on a Non-repatriable basis and open a new NRI Demat account in Zerodha (or any other bank as a general case) and start a fresh new start.
Let me specify, there is no intention to use the existing resident Demat account at all (as of now), however it will be accessed in the future if the status is changed back to Resident Indian.
Kindly suggest, thank you.
Any suggestions?
Yes. It’s possible to convert the existing resident account to an NRI {Non-Repatriable} (NRO) account.
Yes, you’ll be able to open a new NRE {Repatriable} trading & demat account. The process of opening a new NRI account is mentioned here.
Once you convert it to NRI status, you can use it if you wish.
To ascertain the residential status of a client, Brokers/DPs make reference to the FEMA Act. Quoting a provision under the Act, “If a person leaves India for the purpose of employment, business or for any other purpose that indicates his intention to stay outside India for an uncertain period; then he becomes a non-resident from the day he leaves India for such purpose.”
It’s always best if one gets the account status changed from a residential one to that of an NRI {here - NRO (Non-Repatriable) account}.
Note: The onus of declaring one’s residential status vests entirely on the investor.
Once you return back to India, you can change the account status to Resident and continue using the account like how you were doing so earlier.
Should you have any further queries you may write to [email protected]
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