ICICI NRI Demat Account: Investing in India from Abroad

Residing abroad doesn’t mean that you can’t participate in the Indian stock market. Demat accounts are offered by many Indian banks to provide a way to buy and trade stocks within India. Here is how NRIs can get a Demat account at the popular bank ICICI and what you need to know about taxes and withdrawals.

📋 Complete Guide to ICICI Demat Account for NRIs

Can NRIs open a Demat account in ICICI? Overview of ICICI Demat Account for NRIs Features of the ICICI Demat Account for NRIs Managing ICICI Demat account from abroad How to open a Demat account in ICICI for NRIs Offline Process Online Process Documents required ICICI NRI Demat account charges Deposit funds to ICICI Demat Account from abroad Withdrawing funds from ICICI Demat Account Tax Consideration for NRIs Investing in India Meet Wise: Simplify your financial life as an NRI

Can NRIs open a Demat account in ICICI?

Yes, Non-resident Indians (NRI) can open a Demat account with ICICI. A Demat account is an electronic account where shareholders can hold their stock certificates. ICICI Direct allows NRIs to open demat and trading accounts on a repatriable and non-repatriable basis, as long as they meet the FEMA and Reserve Bank of India (RBI) regulations.¹

Interested NRIs can open a Demat account online from anywhere worldwide and invest in stocks, mutual funds, IPOs, ETFs, bonds, and trade in futures and options. Existing ICICI NRI accountholders can open a Demat account through their existing accounts.

Need to send money to your NRI accounts in India?
Wise offers a secure and convenient way to send money to local bank accounts back home. With the easy-to-use Wise app, you can fund your NRI accounts with just a tap and one low transfer fee. Check out Wise to see how much you can save on your next transfer to India.

Overview of ICICI Demat Account for NRIs

ICICI Direct offers a 3-in-1 account for NRIs that links Demat, savings, and trading accounts to cover your needs. This account lets you add to your savings, trade in stocks, and hold your shares in one convenient account. The ICICI Direct 3-in-1 account allows NRIs to access products like equities, mutual funds, IPOs, derivatives, and ETFs. You can operate and trade in real-time online from abroad.²

Features of the ICICI Demat Account for NRIs

The ICICI Demat Account offers multiple features and benefits for NRIs:³

• The ICICI 3-in-1 Demat Account offers simplified trading and ensures fast and convenient facilities for your Demat, savings, and trading account.
• With a single ICICI Direct NRI login, you can trade in real-time on NSE and BSE, and in the primary and secondary markets.
• You can access multiple stock market products like equities, derivatives, IPOs, ETFs, and mutual funds.
• This account offers the flexibility of investing through repatriable and non-repatriable funds.
• You can apply for a PAN card through ICICI Direct for free if you do not have one when opening the account.
• This account allows real-time portfolio tracking.
• Withdrawals are credited to the NRE or NRO accounts after deducting applicable capital gains tax.⁴

Steps to manage and operate the Demat account from abroad

Here are the easy steps to manage your ICICI Demat account from abroad: ⁵

1. Visit the ICICI Direct official website and click the “log in” option.
2. Log into your ICICI account using your user ID and password.
3. View and operate your account from the dashboard.

You can repatriate the funds or send the money abroad if you maintain a repatriable demat account. A non-repatriable demat account does not allow the repatriation of funds overseas. Check out our section below on tax considerations for NRIs.

How to open a Demat account in ICICI for NRIs

NRIs can open their ICICI Direct 3-in-1 account online and offline:⁶

Offline Process

To open an account offline, you must be in India and can visit an ICICI branch. Here is the process to open an ICICI Demat account in person:

• You are required to visit your nearest ICICI branch and fill out the account opening form. Ensure the bank branch offers NRI services.
• Submit photocopies of the necessary documents as per the Official Valid Documents List. The details should be available in the account opening form.
• The bank’s representative will verify your documents before opening the Demat account.

Make sure you have all your documents ready, and the details of any existing NRI accounts you have with ICICI, before you start the process.

Online Process

More convenient for NRIs abroad, the online process allows you to open a demat account without coming to India:⁷

1. NRIs must first place a request online through the ICICI Direct website.
2. Complete the details and click the “Register” option.
3. An office representative will contact you and help you complete the account opening form online.
4. Upload the KYC documents online.
5. Complete the digital In-Person verification process.
6. Print the application form.
7. The official representative will collect the form and documents and courier them to India.
8. The request is processed in India, and the account will be opened if it is approved.

The next section will cover the documents you will need to open an ICICI Direct Demat account.

Documents required to open ICICI Direct Demat Account

NRIs must submit self-attested photocopies of the following documents when opening an ICICI Direct 3-in-1 account.

1. Valid passport
2. Valid visa
3. PAN Card
4. Foreign passport holders must submit their OCI cards or PIO card and a self-declaration.
5. Permanent address proof

You must specify which bank account to link with the Demat account if you maintain both NRE and NRO accounts. Accountholders will only be able to link only one- either a NRE or NRO- with the Demat account. However, you can open multiple Demat-trading accounts with ICICI and map different accounts according to your preference.

The Prevention of Money Laundering Act (PMLA) requires the NRI accountholders to sign a Foreign Account Tax Compliance Act (FACTA) declaration when opening a trading and demat account. The purpose of FACTA is to prevent using financial institutions and banks outside the US to park wealth and avoid taxation on the income earned from such accounts. FACTA is not limited to only US citizens.⁸

There is no minimum investment amount criteria for opening an ICICI Direct 3-in-1 account. While you can open a repatriable or non-repatriable Demat account, you must get a basic Portfolio Investment Scheme (PINS) account to buy shares from the secondary market. Here are the different types of accounts depending on the linked NRI account:⁹

• NRE PINS - allows you to trade shares listed on the NSE and BSE with NRE source of funds.
• NRO PINS - allows you to trade shares listed on the NSE and BSE with NRO source of funds
• NRE NON PINS - allows you to buy and sell ETFs and invest in IPOs and MFs using NRE fund sources.
• NRO NON PINS - allows you to trade ETFs and invest in IPOs and MFs using NTO fund sources. You can also participate in Futures and Options through this account.

ICICI NRI Demat account charges

Here is the schedule of ICICI NRI Demat account charges:¹⁰

Charge	Amount
Account opening	₹0
Annual Maintenance Charges	₹700 (waived for the first year)
Brokerage Charges	Varies for NSDL and CSDL

There may be additional charges and fees depending on the investments you purchase.

Deposit funds to ICICI Demat Account from abroad

NRIs can transfer funds to their ICICI Demat Account from abroad through banks or online providers. Many banks offer international transactions but can come with a high transfer fee or expensive exchange rate.

If you’re looking for a low-cost way to send money to India, Wise can send transfers within seconds on popular routes. You will never pay a hidden fee or exchange rate markup with Wise, and the funds can be deposited right into your ICICI NRI accounts.

Withdrawing funds from ICICI Demat Account

NRIs with repatriable ICICI Demat accounts can withdraw funds and remit them abroad using the bank’s transfer options. ICICI offers theMoney2Worldplatform to facilitate overseas transfers from your ICICI Bank Account.

Non-repatriable accounts will require the withdrawn funds to be transferred to a Non-Resident Ordinary (NRO) account.

Tax Consideration for NRIs Investing in India

NRIs typically have to pay tax on income earned in India. However, you can claim deductions under Section 80C of the Income Tax Act 1961 while filing your tax returns. Deductions are also allowed under Sections 80G, 80D, 80TTA, 54, and 54EC. The complete tax structure for NRIs on income earned in India is available here.¹¹

Here are some of the sources of income in India that can be taxed:

• Income from any property, asset, or other income source in India.
• Capital gains.
• Dividends paid by Indian companies.
• Salaries, interest, royalty, and technical fees received within India.

Want to learn more about taxation in India for NRIs? Read our full guide to NRI taxes in India.

NRIs must be mindful of tax compliance in India and their resident country and be knowledgeable of double taxation policies. The Double Taxation Avoidance Agreement benefits NRIs if India has an agreement with the NRI’s resident country. In that case, the income earned in India will have taxes according to the rates set in the DTAA with that country. Consult a tax professional to understand your DTAA compliance and to ensure all your taxes are paid in both countries.¹²

Meet Wise: Simplify your financial life as an NRI

NRIs can make international transfers and travel easier with Wise. Wise uses smart tech to make moving money around the world simple, secure, and low-cost. Whether you want to send money to your NRI accounts, gifts to family at home in India, or you want to pay like a local when you travel, Wise has got you covered. All international transfers come with just one low transfer fee and the mid-market exchange rate - the same as the one you see on Google, without any markups.

When you want to travel without the hassle of multiple currencies, check out the Wise multicurrency account available for resident living in supported countries. It is one account where you can send, receive, and spend in multiple currencies. So you can reserve a holiday home or book your next trip in popular local currencies. The linked debit card, which lets you swipe and tap at merchants overseas - including in India.

Get Started with Wise 🚀

---

This article is not intended to provide investment, tax or financial advice. Seek out professionals for guidance on your own portfolio and investment needs.

Sources used for this article:

1. NRIs can open demat accounts in India.
2. ICICI Direct 3-in-1 Account
3. Features of ICICI Direct Demat Account for NRIs
4. Benefits of ICICI Direct Demat Account for NRIs
5. Operating your ICICI Direct Demat Account from abroad
6. ICICI Direct Demat account opening process
7. Online account opening process
8. Why is the FATCA declaration necessary?
9. Types of PINS accounts
10. Brokerage charges on ICICI Direct
11. Tax on Income Earned in India by NRIs
12. DTAA Concept

Sources verified on 1 February 2024.