What is the DMAT account

Indian demat account

As an NRI, there are certain limitations as well as advantages.

Restriction on holding a certain number of shares in the company, hence the need to open a new account so that the bank can keep track of the holdings and inform the regulator.

Benefits related to the ability to repay any amount from transactions on this account.

To simplify this, there are 2 accounts, NRO Demat Account (Non PINS): Essentially, this does not allow the repatriation of funds automatically [like NRE], but rather NGOs with an amount of up to USD 1 million per year.

NGO Demat account PINS: Here you can buy fresh shares and take the proceeds out of the country without limit.

In short, you need an NGO Demat NON PINS account. Transfer your existing shares here. Sell ​​whenever you want.

Open an NGO Demat PINS account. If you want to buy more with NRI status and do not want to buy, this account is not required.

Bijo Thomas

If the NRI opens an NGO Demat PINS account and buys stocks with NRI status and they want to return to India after 2-3 years, do they have to sell all of the stocks on that NGO Demat PINS account before returning?

Bijo Thomas

Can both the NRO PINS Demat account and the NRO Non PINS Demat account be linked to the same NRO bank account and NRO brokerage account? Or do you have to maintain two exclusive sets?

Dheer

@BijoThomas ask a separate question. Link this question