It is anybody’s guess that a demat account and a trading account is required if you have any plans of investing or trading in the Indian equity markets. Even if you happen to be a Non-Resident Indian (NRI), you would require a demat account. However to open a demat account in India, you don’t have to come here. You can directly get in touch with a stock broker that is based out of India and is involved in offering Demat Account services to NRIs. Other than stock brokers, there are numerous banks in this country, both private and government banks, which offer demat account services for NRI investors.
Opening a demat account in itself is very advantageous. Since demat account stores your investments in dematerialized or electronic form, all the risks related to the storage of securities in physical form are eliminated. The demat account holders have the liberty of purchasing and/or selling even a single share. The demat account services provided by stockbrokers in India also include receiving regular statements.
There are primarily two types of demat accounts meant for non-resident Indians- Repatriable and Non-Repatriable. A Repatriable Account is meant for those NRIs who purchase shares with repatriable funds. Sale proceeds of repatriable demat accounts are credited to an NRE Bank Account. On the other hand, a Non-Repatriable Account is meant for those NRIs who purchase securities using non-repatriable funds, and the sale proceeds of which are credited to an NRO Bank Account.
While opening a demat account in India, there are certain things that you should keep in mind. Most of the stock brokers in India offer the option of transferring securities, which you can avail by talking to a representative of your desired bank. And there are many ways of transferring your funds. Numerous banks offer secure online fund transfer facility that can be done by way of logging on to your online account on your bank’s website. This can be done only when your bank provides you with your user ID and secure password. Another way is to call up the bank’s customer care number, which is toll free in most cases, and use the IVR mode for transferring funds securely.
There are many ways in which you can ensure the right selection of the stock broker in India for demat account opening. You should peruse through the terms and conditions given in your demat account opening form. If you have any query in your mind in the process, you should post them in various trader and investor forums. You should also ask the experienced traders and investors about their first hand experiences. Take the advice and suggestions of everyone around you, but the final call should be yours.
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