Summary of account opening process.
First of all the reason for writing this mini-article is one of my friends wanted to know how cumbersome it is to open a demat account in India from UK. And then many others, from a Whatsapp group I’m part of, were interested in the same information. Hence the article.
I will try to be very brief and provide links for more details wherever appropriate.
This mini-blog has three sections- 1️⃣Prerequisite, 2️⃣Process and 3️⃣Personal take. I am happy to take any follow up questions once you have read all three sections.
1️⃣Prerequisites:
- Must have an NRO account in Indian bank. For PIS, NRE account is also needed.
- Must be an NRI for tax purposes.
If the prerequisites are met, read on.
First of all, there are two types of demat account NRI can have.
- repatriable ( gains/investments can be brought back to UK easily)
- non-repatriable (gains/investments stay in India)
For simplicity let’s just call repatriable as NRE mode and non-repatriable as NRO mode. Please read this to understand the two types in detail.
2️⃣Process:
Opening a non-repatriable NRO demat account is relatively easy as it neither needs a PIS letter nor an NRE account.
Please see how to open an NRO demat account with zerodha here.
At first sight the list may look overwhelming but the best way to get it done easily is to raise an account opening support ticket on their website. Zerodha has strict customer care SLAs so things move fast once you raise a ticket.
As a standard practice, you will have to provide self-attested and notarised copies of these three documents
- ID proof (like Passport)
- Proof of being NRI (like BRP card)
- Overseas address proof (like utility bill)
All other documents (yes there are other documents 🙃) are not required to be notarised.
The most cost effective and convenient way to obtain notarisation is via local post office. (My heart skips a beat these days when I hear the word ‘local post office’) But that apart, you can get this done at only £12.75 at local post office and no appointment is needed. Definitely read the second half of this article before you visit the post office (Been there done that experience)
Ways to invest in Indian equities
Once all documents are submitted via email and okayed, you will need to courier them to Zerodha Bangalore. It should take 72 hours to activate the account.
After this you can initiate transfer of any equities held with other broker through zerodha itself.
The account opening process might seem a bit overwhelming but it’s worth it.
3️⃣Personal take:
I am happily using zerodha NRO demat account for last few years.
Initially I had both PIS and non-PIS accounts but realised I wasn’t using PIS account at all. So closed it.
Zerodha’s Kite app works fantastically on iPad.
Zerodha have an entire ecosystem of useful apps like coins, console and others which are free to use.
Zerodha provides all sorts of reports (Tax P&L, Capital gain/loss) which are handy when filing IT return in India and UK.
Definitely add nomination at the time of account opening. You can specify % to each nominee.
You can transfer stocks between your zerodha account and other zerodha accounts easily.