3 years back I moved to dubai but still I’m using my normal trading account only but I’m an NRI now. So far I didn’t open an NRI trading and demat account because of the long procedures. I want to know is there any problem using this account? Is there any regulatory or legal issues using this account? Its fully functional since I’m maintaining my savings bank account in India. Please advise. Thanks alot
As per banking regulations you are supposed to inform the bank on change of your status as and when you have become an NRI. That should have been followed up by converting your existing resident trading and demat account to NRO demat and trading account.
The first step is to convert your bank account to a NRO account.
The steps and documents required to convert the Zerodha account to NRI account is mentioned here.
If the client not inform to anyone and keeps it secret; is there any legal problem?
On your ITR, you have to declare your residential status… so you cannot keep it secret if you plan to file ITR.
If the client forgets or does not convert the trading account to nri ; what is the legal consequences?