Non-resident Indians can use repatriable Demat accounts to invest in Indian stocks and easily transfer funds back to their home country, making international transactions smooth.
There are various types of Demat accounts that are available, namely regular, repatriable, and non-repatriable. While these are available to all individuals, the usage primarily depends on their residency status. For instance, Non-Resident Indians (NRIs) can choose between the repatriable and non-repatriable account, depending on whether they prefer to transfer funds abroad or not.
If you wish to conduct transactions within the country and transfer your funds abroad, you can opt for a repatriable account. Read on to learn more about this type of account in the following sections.
A repatriable Demat account is a type of Demat (Dematerialised) account designed for Non-Resident Indians (NRIs). The account facilitates their investment in the Indian stock market and other eligible securities while allowing them to repatriate or transfer funds back to their foreign bank accounts. By opening a repatriable Demat account, account holders are required to adhere to the rules laid out by the Foreign Exchange Management Act (FEMA).
Furthermore, you are required to link your Demat account with your Non-Resident External (NRE) Accounts, unlike regular Demat account holders. However, it is important to note that the ability to transfer funds abroad is dependent on the regulations and laws of both the citizen and the residing country.
FAQs on Repatriable Demat Account
What happens to a resident’s Demat account when they become an NRI?
On becoming an NRI, individuals can either choose to convert their resident account to an NRO account or keep the assets in their account on a non-repatriable basis. Additionally, they can transfer securities to Indian relatives and close the account.
What is the difference between a repatriable and a non-repatriable account?
The primary difference between the two types of Demat accounts is the ability to transfer funds abroad. While repatriable Demat accounts allow transferring funds overseas, a non-repatriable account does not permit this, with the exception of dividends and interest earnings.
Can NRIs have more than one Demat account?
Yes, NRIs can open as many Demat accounts as they wish to, including NRO and NRE accounts.
Who is eligible for a repatriable Demat account?
NRIs, PIOs and OCIs are eligible to open repatriable Demat accounts.
Can NRIs hold a joint repatriable Demat account with a resident Indian?
Yes, NRIs can hold a joint repatriable account with another NRI or a resident Indian. However, some restrictions may apply, depending on the type of securities.
Are there tax implications for investments in a repatriable Demat account?
Yes, different types of investments may have different tax treatments, and tax benefits may be available depending on the prevailing Indian tax laws and DTAA.
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