Sharekhan NRI Demat Account: Investing in India from Abroad

A Demat account holds electronic security certificates for investors in the Indian stock market. While many Indian banks offer accounts, brokerage firms like Sharekhan also offer Demat and trading account services for resident and Non-resident Indians (NRI). Learn more about Sharekhan, how it works for NRI Demat accounts and tax considerations.

Can NRIs open a Demat account in Sharekhan?

Yes, NRIs can open a Demat account with Sharekhan. Sharekhan is a full-service brokerage firm with over 16 lakh customers. The company is owned by the global bank BNP Paribas.

NRIs can use Sharekhan’s Demat and trading account services to invest in equities, bonds, Initial Public Offerings (IPO), mutual funds, exchange-traded funds (ETF), and trading in futures and options. However, Sharekhan does not offer key NRI bank services like Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts. So, NRIs must link their existing NRE or NRO accounts from a bank, or open a new one, to Sharekhan Demat and trading accounts.¹

To make moving money from NRI accounts easier, Sharekhan has banking relationships with top Indian banks like HDFC Bank, IndusInd Bank, IDBI Bank, and Axis Bank.

NRIs can fund NRO accounts with income earned in India, while NRE accounts are generally funded with money earned abroad.

Overview of Sharekhan Demat Account for NRIs

The brokerage firm Sharekhan has a nationwide presence with over 4000 centres across over 1000 Indian cities.

Since Sharekhan does not offer banking services, NRIs can open Demat and trading accounts with the firm and link them with the NRE and NRO banking accounts. Opening an account on Sharekhan gives you access to research, calculators and expertise in the Indian investment and stock markets.

Sharekhan offers the following types of Demat accounts for NRIs:²

• NRI-Repatriable Demat Account - Linked to your NRE account, this account allows the sending, or repatriation, of funds to your country of residence.
• NRI-Non-Repatriable Demat Account - This account is linked to your NRO account and is not repatriable which means any funds have to remain in India.
• Portfolio Investment Scheme (PIS) - A PIS provides RBI approval to trade shares in the secondary market. This account is opened along with your Demat account and is linked to your NRE or NRO savings account. It does not allow transactions in mutual funds, derivatives, and IPOs.
• Non-Portfolio Investment Scheme (NON-PIS) - Covers all transactions that do not come under PIS so it includes preference shares, NCDs, and bonds.

Features of the Sharekhan Demat Account suited for NRIs

Here are some of the features of the Sharekhan Demat Account that are suited for NRIs:³

• Ability to invest in multiple share market products like equities, bonds, NCDs, EFTs, IPO offers, derivatives, and mutual funds.
• A dedicated Sharekhan Relationship Manager to help achieve your financial goals.
• Access research reports for every asset class to remain updated with the latest capital market trends.
• Real-time portfolio tracking services with price alerts help you remain updated about your investments.
• A dedicated customer service desk at 91-22-61151122.
• Trader-friendly platforms to make trading easy and convenient.
• Secure transactions with automated funds and securities settlements.
• The backing of BNP Paribas, one of the largest banks in Europe.

Steps to manage and operate the Demat account from abroad

A Sharekhan account can be managed online or from the mobile app. You can trade investment vehicles and hold your electronic certificates in your Sharekhan Demat account. Since NRI accounts are not available at Sharekhan, you must link your accounts from another Indian bank to fund your account. Here are examples of the different trading processes available with your Sharekhan NRI Demat Account:⁴

Trading Process For Cash Segment - Trading Account with HDFC PIS Bank

1. Deposit funds into your HDFC PIS account.
2. Log into the Sharekhan home page.
3. Go to Move Funds and block the amount you wish to trade.
4. Sharekhan connects you to your HDFC PIS A/c
5. Confirm the amount on the HDFC website.
6. The amount gets added to Sharekhan, allowing you to start trading.

Linking your trading account with other banks - Axis or IndusInd Bank

1. Allocate the funds to your bank account
2. Banks share the PIS Balance with Sharekhan.
3. Sharekhan updates the balance in your Trading Limit.
4. Now, you can log into your Sharekhan account and start trading.

After finishing a trade, the settlement process is important for the transaction to complete. The settlement cycle in India is the T+2, which means the day of the trade plus two days. PIS guidelines require reporting of trade transactions to PIS bank within 24 hours.

Trading process for Derivatives Trading - only for NRO NON-PIS account

1. Visit the homepage
2. Click on ‘Move Funds’
3. Select the bank account and transfer funds.
4. The limit gets updated, allowing you to start trading.

The Sharekhan website has the full guidelines for NRI trading.

How to open a Demat account in Sharekhan for NRIs

Here are the steps so an NRI can open their Sharekhan NRI Demat Accounts online:^5,6

1. Visit the Sharekhan home page.
2. Click on Login
3. Select Register Me
4. Enter your mobile number, city, and email ID, set your password, and complete the Captcha requirement.
5. On successful registration, you can open your Demat account by entering your name, address, and resident status.
6. Confirm your phone number with the OTP.
7. Submit the necessary documents.
8. A Sharekhan executive will contact you through e-mail to complete the account opening process.
9. Sharekhan sends the bank account opening forms and other documents to your NRI bank for processing and obtaining PIS permission.
10. The bank shares the NRE or NRO account number with Sharekhan.
11. On receiving the information from the bank, Sharekhan will open the Demat and trading account.

Once you have opened a Demat and trading account, Sharekhan will send you a welcome kit. There is no minimum investment account with Sharekhan.

Documents required for opening Sharekhan NRI Demat Account

NRIs must submit the following documents when opening their Sharekhan NRI Demat Accounts:⁷

• A completed Demat Account Opening form
• A passport-sized photograph
• PAN card
• Passport
• OCI, if applicable
• Copy of your foreign visa, if applicable.
• Address proof documents like a passport, valid driving license, utility bills, or bank account statement
• Completed and sign declaration that you will comply with FEMA and PMLA regulations
• Copy of the RBI approval letter, if any, for acquiring securities
• Bank account details, including an original cancelled cheque that has your name, account number, and bank code

FATCA Declaration

Foreign Exchange Tax Compliance Act (FATCA) is a US legislation introduced by the IRS to prevent evading tax. NRIs opening a Demat account must sign and submit the FATCA declaration.

Sharekhan NRI Demat account charges

While there are no charges to open a Sharekhan account, there are fees for use. Here are some of the costs to expect:⁸

Sharekhan has a brokerage calculator to help understand your costs when buying and selling investments. You can also find the full tariff structureonline.

Deposit funds to Sharekhan Demat Account from abroad

NRIs can use their bank’s Net Banking or online transfer services to deposit funds into their NRE or NRO accounts and then allocate the money to their Sharekhan account.

Need a simple way to get funds to your NRE account in India? You can send money online directly to an NRE account in India with Wise. Wise has transparent pricing so you will see your one low transfer fee upfront, and the real mid-market exchange rate. That means no extra fees with Wise. Send a transfer with Wise and get going on your investment journey with Sharekhan.

Withdrawing funds from Sharekhan Demat Account

NRIs cannot withdraw funds directly from their Sharekhan Demat accounts and transfer them abroad. Any funds earned and realized from dividends and the sale of securities are credited first to the NRE or NRO accounts in India. Once the money has been deposited, it can be kept in India for other uses or if you have a repatriable account, you can transfer the money to your foreign bank.

The costs of transferring money abroad will depend on your bank. Check the charges for outward remittances from your NRI account.

Tax Consideration for NRIs Investing in India

Income earned from the sale of shares is subject to long or short-term capital gains and income tax in India. NRIs can file their IT returns in India for income earned from trading accounts.

While income earned in India is taxable, NRIs must be mindful of tax compliances in their resident country. Many countries have a Double Tax Avoidance Agreement (DTAA) with India to avoid double taxation. Consulting a tax professional or chartered accountant is best to understand your tax implications.

Read more about types of taxes and rates in our article NRI taxes in India.

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. 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 🚀