Hi All,
If person staying outside India and he transfer the funds to his NRE account from his foreign account.
He again transfer fund to Saving(India) account which linked to one of his Demat account then he investing in Equity and Mutual Funds.
Is anything wrong in this ? As he is NRI , he should invest using NRE Demat account only ?
Please advice
As per RBI mandate, you cannot hold Savings account in India once your status becomes NRI. You have to either close the Savings account or change the status of it as NRO account and continue to invest in MFs.
If you wish to invest in Equity then you have to come through Portfolio Investment Scheme (PIS) route. First, close your resident trading & Demat account and transfer the shares to PIS linked Demat account.