NRI Investment Woes: Cumbersome Account Opening Deters NRIs From Indian Stock Market
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Opening an NRI demat account to invest in Indian stocks is cumbersome, requiring physical presence in India or notarized documents. This deters many NRIs.
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NRIs need to open NRE or NRO accounts before opening a demat account. NRE allows repatriation abroad; NRO restricts it.
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PIS demat accounts allow repatriation but have restrictions. Non-PIS accounts don't allow repatriation but are easier to open.
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Extensive documentation is required for NRI demat accounts, including FATCA declaration, visa details, etc. Physical presence or couriered documents are needed.
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Some startups like iNRI offer mutual funds to NRIs without needing a demat account, which is easier than the brokerage account route.