Upstox NRI Account: Demat account for Indian Expats

Non-resident Indians (NRI) who want to take part in the Indian stock market can do so with an NRI trading and Demat account. Both of these accounts can be found at many Indian banks that have NRI services or some investment platforms. Upstox is an investment platform in India where residents can trade in securities, stocks and bonds online. Learn more about how Upstox works and whether NRIs can open an account.

Can NRIs open a demat account in Upstox?

No, Upstox has discontinued NRI accounts service. So NRIs can no longer open a demat and trading account with UpStox.

Upstox is a financial-technology company that allows resident Indians to invest online. A demat account is an account to hold your securities certificates, while a trading account lets you trade in financial instruments like stocks. Upstox does not offer pure banking services but offers linking facility with popular banks like HDFC Bank and Yes Bank.¹

NRIs who want to invest in the Indian capital markets must open a NRI demat and trading account. NRIs would also need to open a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts at their preferred banks and link them to the new demat and trading accounts. Many banks offer NRI services including demat and trading accounts.

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Overview of Upstox Demat Account

Upstox no longer offers demat accounts for NRIs. However, the platform offers two types of demat and trading accounts for Resident Indians:²

• PINS (Portfolio Investment Scheme) Account: A PINS account allows for trading equities and shares in the Indian capital markets.
• NON-PINS Account: NON-PINS accounts allow investment in IPOs and mutual funds. Resident Indians can also trade in derivatives using the NON-PINS account as long as you have a Custodian Participant code (CP code).

Features of the Upstox Demat Account

Although NRIs can not open an account, the Upstox Demat Account offers several features and benefits for Resident Indians:³

• Convenient Upstox mobile app.
• Trading in the secondary market through the PIS scheme.
• Invest in futures and options.
• Purchase bonds issued by PSUs.
• Mutual fund trading, subject to FACTA approvals.
• Intraday trading transactions in the Cash/Equity segment.
• Currency and Commodities trading.
• Margin products in the cash segment.

Before deciding on an investment platform, ensure it has the services and features you are looking for.

How to manage and operate the Demat account from abroad

Upstox is a completely online platform which makes it easy for Resident Indians to operate their demat and trading accounts. You can log in online or use the Upstox mobile app to trade and manage your account.

You can have money sent to your Upstox account from your linked bank account, and transfer funds back after sales or withdrawals.

If you are an NRI, consider opening a trading and demat account with the bank that currently holds your NRI bank accounts or establishing a relationship with a new Indian bank for NRI services.

How to open demat account in Upstox

NRIs are not allowed to open demat accounts with Upstox. Resident Indians can open an account directly on the Upstox website. You can enter in your local Indian phone number and you will be sent the steps to proceed with opening an account. Upstox offers a quick opening process of under two minutes and a free demat account.

Documents required

If you are a resident Indian, you will need to provide documents to verify your identity and address. Here are some of the documents you will need:

• Proof of identity like PAN Card, UID (Aadhaar), driving license, passport, voter identity card or NREGA Job Card.
• Proof of address like a utility bill from within the past two months or a bank account or post office savings bank account statement.
• Proof of bank account.

Minimum Investment Amount

Upstox does not have any minimum investment criteria.

Upstox Demat account charges

Upstox no longer offers demat accounts to NRIs. Resident Indians who are interested in opening a Upstox demat account can find account and brokerage charges online.⁶

Deposit funds to Upstox Demat Account from abroad

Resident Indians will need to link their local Indian bank account to their Upstox account to fund trading activities. NRIs are not eligible for Upstox accounts.

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Withdrawing funds from Upstox Demat Account

Generally, NRIs can withdraw money from demat accounts with banks or providers that offer NRI demat accounts. The funds will have to go to either a NRE or NRO account, and depending on the account, the funds may be repatriable.

Upstox only offers accounts to resident Indians so any withdrawals will have to be sent to a local bank account.

Tax Consideration for NRIs investing in India

NRIs must pay tax on income earned from the Indian capital markets, which can include income and capital gains taxes when a gain is realized. NRIs must also comply with their country of residence's taxation rules. Many countries have entered into a DTAA arrangement with India to help NRIs avoid double taxation.

Learn more about taxes as an NRI with our guide to NRI taxes. Consult a tax expert for individualized advice on international and resident taxes when you live outside of India.

Tax Consideration for NRIs investing in India

NRIs must pay tax on income earned from the Indian capital market. The capital market transactions are subject to Capital Gains Tax. The NRI received the funds in their account after TDS. However, NRIs can claim tax concessions and deductions under multiple sections of the IT Act 1961 if they opt for the Old Tax Regime. These concessions are unavailable in the New Tax Regime.

At the same time, NRIs must comply with their country of residence's taxation rules. Many countries have entered into a DTAA arrangement with India to benefit NRIs from double taxation. You can consult taxation experts to understand more about the DTAA benefits.

One of our earlier articles on NRI taxation can prove handy.

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This article is intended to be a general overview of NRI financial options and not investment, tax or immigration advice. Consult professionals to help you reach your personal and financial goals.

Sources used for this article:

1. Upstox
2. Types of Upstox NRI Demat Accounts
3. Features of Upstox Demat Accounts
4. Opening an Upstox Demat Account
5. Documents required for opening Upstox Demat Account
6. Upstox Demat account charges

Sources verified on 9 February 2024.