NRI are Indian citizens who stay abroad for employment or for carrying on any business or vocation or for any other purpose in circumstances indicating an indefinite period of stay outside India. Indian citizens working abroad on assignments with foreign Governments, Government agencies or international/multinational agencies like United Nations Organization (UNO), International Monetary Fund (IMF), World Bank etc. Officials of Central and State Governments and public sector undertaking deputed abroad on assignments with foreign Government/agencies/organizations or posted to their own offices (including Diplomatic Missions) abroad

Can NRI open Bank account?

You can maintain an account with banks that are authorized dealers (i.e., those who can deal in foreign exchange) and those which have been authorized on this behalf by the Reserve Bank of India. You can maintain accounts in rupees as well as foreign currency. Foreign currency accounts can be maintained with authorized dealers only.

What is the Portfolio Investment Scheme?

Under this scheme, NRIs/OCBs are permitted to invest in shares/debentures of Indian companies or units of domestic Mutual Funds through Stock Exchanges in India. These investments require prior approval of Reserve Bank of India

Being an NRI, what are the prerequisites to start investing in the Indian stock market?

To trade on Indian Stock Exchanges in the capacity of an NRI, you would need to:

Open a bank account with a RBI (Reserve Bank of India) approved designated bank branch.
Take RBI approval for investment in the Indian Stock Market.
Open a Demat Account with a Depository Participant.
Appoint a broker to execute trades on your behalf on the Exchange.
 

Is it necessary for a resident Indian, holding securities in Indian companies, to secure any approval from the Reserve Bank of India on his becoming a non-resident for holding such securities?

No. Reserve Bank of India has granted general permission to companies in India to enter the overseas addresses of the shareholders in their books in such cases, provided the companies obtain undertakings from the holders that they will not seek repatriation of any sale proceeds of the underlying securities.

Can NRIs remit funds through Exchange Houses for investment in Government securities, National Savings Certificates and Units of Unit Trust of India?

Yes.

Can NRIs remit funds through Exchange Houses for investment in shares/debentures of Indian companies?

Yes, subject to general/specific permission of Reserve Bank for such investment.

Does an NRI require PIS permission to purchase shares in Primary market (IPOs) on repatriable basis?

No., NRIs can purchase shares in primary market on repatriable basis and application money can be paid through regular NRE SB account or through inward remittance

Does NRI requires PIS permission to purchase shares in Primary market (IPOs) on non - repatriable basis?

NO, NRIs can purchase shares in primary market on non-repatriable basis and application money can be paid through regular NRE/ NRO SB account or inward remittance.

Can NRIs receive shares in inheritance?

Yes, NRI can receive shares in inheritance. RBI permission is not required to be obtained and the shares will be held on non-repatriable basis.

What is the status of shares purchased in primary market/secondary market as a resident Indian, once the customer becomes a NON-RESIDENT?

The shares purchased through Primary / Secondary market as a resident will be held on non repatriation basis, once the customer becomes an NRI. These  shares can be credited to NRO DEMAT account. These shares can be sold in secondary market without PIS permission. The sale proceeds can be credited to NRO SB account after payment of capital gain taxes.

Does NRI require to take permission for dematerialisation/rematerialisation of securities?

No permission is required from RBI to open a demat account. Holding securities in demat only constitutes change in form and does not need any special permission

Does an NRI need any RBI permission to open demat account?
No permission is required from RBI to open ademat account. Holding securities in demat only constitutes change in form and does not need any special permission

What are the procedures to be followed with respect to investment in securities in case person resident in India becomes NRI?

On becoming an NRI, a new depository account with appropriate NRI status is to be opened and all the balances held in account with ‘Resident’ status should be transferred to the account with NRI status & securities held under this account will be treated on non-repatriable ba.sis

Where can an NRI open a demat account?

NRI can open a demat account with any Depository Participant of NSDL. The NRI needs to mention the type (‘NRI’ as compared to’ Resident’) and the sub-type (‘Repatriable’or‘Non-Repatriable’) in the account opening form collected from the Depository Participant.

Does NRI require any permission to subscribe to Rights issue of a company?

No

Does NRI require any permission to receive bonus shares?

No

Can an NRI and person resident in India have a joint demat account?

Yes. For the purpose of determining ownership of holding, the first holder is taken into account. Hence, even though other joint holders may be persons resident in India, the sale proceeds of such securities can be repatriated in case the first holder is permitted to repatriate funds 

What are the permissions required for off-market transfer of securities?

From NRI to NRI- No permission From person resident- No permission outside India to person resident in India (Gift)From person resident in - Application to RBI India to person resident by transfer or outside India (Gift)From person resident in - Approval from GOI India to person resident and then RBI, if the outside India (Sale) acquisition is on repatriable basis. But if acquisition is on non-repatriablebasis, approval only from RBI From person resident- RBI Permission outside India to person through form Ts1resident in India (Sale)

Demat Accounts for NRIs

 ICICI bank

http://www.icicibank.com/pfsuser/demat/dappliprocess.htm

http://content.icicidirect.com/mailimages/nri-feeschedule.htm

For further assistance, write to nri@idbibank.com and get in touch or call the NRI Services branch nearest to you to receive more detailed information about these products.

This is most popular site for trading and demats account service.

IDBI Bank

If you are a Non-Resident Indian (NRI) who has invested in shares, bonds, debentures of Indian companies or would like to do so now, open a Demat Account with us either under NRI Repatriable or NRI Non-Repatriable category. Through our Internet Banking, you can view your Demat Account balances and print statement of transactions and holdings from anywhere in the world.

HDFC Bank

NRI Investment Services

For further details on PIS and to enroll for the scheme, email us at nricenter@hdfcbank.com