I just converted my savings account to NRO and created a new NRE account. Now the bank is asking me to convert my demat to NRO demat where I need to close my exising demat account and open a new NRO demat account. I only have option to either transfer my stocks to some one in India or sell the stocks and get the money since shares cannot be transferred from demat to NRO demat.

Just wanted to know if I am really required to convert my demat to NRO demat? Or I can just keep it as is and still trade and pay income tax on the profits?

please advise. whats the best solution in this case? I am still an Indian citizen.


1 Answer 1


As an NRI there are certain limitations as well as benefits.

Limitation in terms of holding a specified quantity of shares in company, thus the need to open new account, so that Bank can track the holding and inform regulator.

Benfits in terms of able to reptriate any amount of funds from trades in this account.

In order to ease this, there are 2 Accounts NRO demat account (Non PINS): Essentially this does not automatically allow for reptration of funds [like NRE] but its more like NRO, amount upto USD 1 million per year.

NRO Demat account PINS: Here you can buy fresh shares and take the proceeds out of country without any limits.

So in short, you would need an NRO Demat NON PINS Account. Transfer your existing shares here. Sell whenever you like.

Open a NRO Demat PINS account, if you wish to buy more with status as NRI, if you don't wish you buy, there is no need for this account.

  • If the NRI opens an NRO Demat PINS account, and buys shares with status as NRI, and if they plan to return back to India after 2-3 years, do they have to sell all the holdings in that NRO Demat PINS account before they return? Commented May 8, 2017 at 14:22
  • Also, can both NRO PINS Demat account and NRO Non PINS Demat account be linked to the same NRO Bank Account and NRO Brokerage Account? Or is it that one has to maintain two exclusive sets? Commented May 8, 2017 at 14:35
  • @BijoThomas ask a separate question. Link this question
    – Dheer
    Commented May 8, 2017 at 15:57

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