Hi, I started using zerodha almost 5 months before and have been regularly buying stocks and mutual funds SIP. However, recently realized that I should have been registered as an NRI as I am a seafarer and am using an NRE account with HDFC for depositing funds into zerodha.
How can I correct this mistake??.
So far I am holding stocks worth 3 lakh with Kite and smallcase and mutual funds worth 1.5 lakh. I have pause my SIPs for the time being to avoid any further complications.
From what I understand, I will need to get a PIS letter from. HDFC bank since I have an NRE account with them.
Is it possible for me to convert the current zerodha account to an NRI account. Please advice the procedure for the same. Also, what will happen to the stocks that I hold and the mutual funds once that happens.
Secondly my wife also is an active member of zerodha and is a resident Indian. Can I transfer all my stocks and mutual funds to her name.
Which of the above two solutions do you recommend?.
Please advice
1 Like
The onus of changing the account type from resident to NRI vests entirely on the client if he is a non-resident of India for an uncertain period.
Either way, a resident account cannot be converted to an NRE account, it can only be converted to an NRO account. Since you have an NRE account, you will have to close your resident account, open an NRE account and continue investments there.
You can transfer the shares and MF units in your resident demat account to your wife’s resident demat account using a DIS slip before you close your resident account.
More reading material in the posts below: