I want to trade Indian stocks online and will require a demat account with an Indian bank. I have my PAN number registered and all documents in place except the voting card. And I live in Nepal. Can I open the demat account with the Indian Bank from here (Nepal) and start trading stocks with a broker of my choice?
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Probably no as you don't reside in India. They would ask for permanent and correspondence address. The moment you say Nepal, they may ask questions. But as you have a PAN card, I would ask to call up the banks and clarify.– DumbCoderCommented Sep 18, 2014 at 8:09
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3 Answers
You need 2 things One a Demat Account and second a Broker Account. If you need to trade online, then an agreement [Power of Attorney] between Your Saving Bank Account, the Demat Account and the Trading Account. So there are quite a few forms that need signature and proof of identify. Physical presence is required.
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is same thing applicable for other countries like us uk and Australia Commented Oct 28, 2015 at 12:23
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@saurabhkamble sorry didn't get your question. If you are NRI, you need different set of accounts and some Indian banks operating outside India offer to facilitate.– DheerCommented Oct 28, 2015 at 14:09
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stay in India want to invest/ trade in other countries Commented Oct 28, 2015 at 15:04
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1@saurabhkamble That is a different question. It is already answered on this site. Best is open account with Indian broker who gives such services.– DheerCommented Oct 28, 2015 at 15:34
To trade stocks in India, you need a copy of your pan card, address proof(passport or driving license/electricity bill), income tax return (if you are trading futures & options and currencies), and a cancelled cheque from the bank. You will also need to sign across your recent photographs, and require various other forms from a brokerage house which need to be signed in the brokers presence.
If your stock broker trusts you, and you have all these documents, then you CAN open a DEMAT account in India by signing and sending him all these documents. Otherwise you CANNOT, as every single form states that "this particular document was signed in my presence", and the stock broker needs to sign under that clause.
Chances are, if you live abroad, no broker will ever trust you with any kind of margin, and therefore cannot make profits from you, so they will not agree to open your account.
Yes NRIs are allowed to open a DEMAT account in India from abroad.
Investments can be made under the Portfolio Investment NRI Scheme (PINS) either on repatriation or non-repatriation basis.
As per,the guidelines of the Reserve Bank of India it is mandatory for NRIs to open a trading account with a designated institution authorized by the RBI.
They must avail either a Non-Resident Ordinary (NRO) or Non-Resident External (NRE) account to route the various investments.
