A Complete Guide on Upstox NRI Demat Accounts 2023 – Benefits, Charges, Documents Required, CP Code, Terms & Conditions and Account Opening Process

Table of Contents

Upstox NRI Demat Accounts

Benefits of Upstox NRI Demat Accounts

How to open Upstox NRI Demat Accounts?

What are the documents required to open Upstox NRI Demat Accounts?

Upstox NRI Demat Accounts Charges

Upstox NRI Demat accounts CP Code

Upstox NRI Demat Accounts – Terms & Conditions

Conclusion

Are you interested in Upstox NRI Demat Accounts? NRIs play a vital role as significant contributors to the Indian economy through their remittances. In the realm of India’s Foreign Exchange Management Act of 1999 (FEMA), NRIs are not outsiders, but rather Indian citizens or individuals of Indian origin residing abroad for employment, business, or personal reasons. Those who spend less than 182 days in India during the preceding financial year also fall under the NRI classification. To facilitate their investment and trading endeavors, specialized instruments have been devised exclusively for NRIs, enabling them to participate in the Indian securities market.

Similar to resident Indians, NRIs require a demat account to securely hold and manage their stocks, futures & options, bonds, and other financial assets within India. However, NRI demat accounts are purposefully designed to cater to their unique requirements. Upstox proudly offers Upstox NRI Demat accounts – demat accounts tailored specifically for NRIs, providing them with comprehensive solutions.

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Upstox NRI Demat Accounts

Upstox NRI Demat accounts for NRIs are a vital tool, just like they are for resident Indians, enabling them to securely hold and manage various financial assets such as stocks, bonds, futures & options, and more within India. However, Upstox NRI Demat accounts are uniquely tailored to meet their specific requirements. Explore the two primary types of accounts through which NRIs can trade in India:

1. PINS (Portfolio Investment NRI Scheme) account

Under this scheme, NRIs can engage in trading activities in the Indian share market, specifically dealing with equities and shares. The PINS account itself can be further categorized into two types: Non-Resident Ordinary (NRO) and Non-Resident External (NRE) accounts. With an NRE PINS account, the funds invested can be repatriated back to the NRI’s foreign country. On the other hand, funds from the NRO PINS account must remain within India, limiting repatriation options.

2. NON-PINS Account

The NON-PINS account is designed for NRIs looking to invest in Initial Public Offerings (IPOs) and mutual funds. Similar to the PINS account, it can be divided into NRO and NRE accounts. An NRE account allows NRIs to repatriate their funds back to their foreign country, providing greater flexibility. However, an NRO account does not permit repatriation of funds. Additionally, trading in derivatives is also possible with a non-PINS account, as long as a Custodian Participant (CP) Code is utilized.

With these distinct account types, NRIs have avenues to engage in various investment opportunities in India while ensuring compliance with regulations and meeting their specific financial objectives.

Benefits of Upstox NRI Demat Accounts

With Upstox NRI Demat accounts, you can enjoy numerous advantages:

1. Trade and invest in the economy of your home country.
2. Automatic updates of stock market investments in your demat account, saving time and providing easy management of securities.
3. NRE demat account enables funds repatriation to your country of residence.
4. Eliminate the need to visit India for every trading transaction.

How to open Upstox NRI Demat Accounts?

To open Upstox NRI Demat accounts, follow these steps:

1. Choose the Depository Participant (DP) – Upstox, which is an SEBI-authorized brokerage firm, as your broker of choice.
2. Obtain the NRI account opening form from Upstox, and access its online NRI registration page.
3. Fill out the form, providing necessary details and attaching proof of identity and address. For online Aadhaar-based registrations, upload scanned copies and enter Aadhaar card details.
4. After completing the form, sign an agreement with your broker outlining your responsibilities as a trader/investor and those of the brokerage.
5. Once the document processing is finalized, you will receive your demat account number, similar to how a bank account number is provided when opening an account.

What are the documents required to open Upstox NRI Demat Accounts?

In order to open Upstox NRI Demat accounts, several documents are required, in addition to the Account Opening Form. The following documents are mandatory for opening a PIS, Trading, and Demat Account:

1. Passport Copy: A copy of the passport is required as a primary identification document. If the applicant holds a foreign passport, it must be accompanied by an OCI/PIO Card that matches the passport number.
2. Valid Visa Copy: A copy of the valid visa is necessary to establish the NRI’s residency status.
3. PAN Card: Regardless of residential status, a PAN card is mandatory for all applicants.
4. Identity Proof: Applicants can submit any of the following as identity proof: Pan Card, driving license, voter card, or Overseas Citizen of India (OCI) card.
5. Overseas Address Proof: Documents such as a driving license, bank statement, lease/rent agreement, or utility bill can serve as proof of the NRI’s overseas address.
6. Indian Address Proof (Optional for OCI/PIO): For OCI/PIO applicants, providing proof of an Indian address is optional. Acceptable documents for Indian address proof include Aadhar Card, Voter ID, Driving License, Bank Statement, or utility bill.
7. Photograph: The applicant must provide a photograph that meets the requirements specified in the Upstox NRI Demat accounts Opening Form.

In cases where the client cannot visit the branch for a face-to-face interaction, all photocopies of the documents should be self-attested by the customer and further attested by the Indian Embassy, a Notary, or the customer’s overseas banker. This requirement applies to all the documents.

Please note that the Upstox NRI Demat accounts Opening Form and the above-mentioned documents are mandatory for opening a PIS, Trading, and Demat Account.

By ensuring the submission of these documents, NRIs can fulfill the necessary requirements to open Upstox NRI Demat Accounts.

Upstox NRI Demat Accounts Charges

Regardless of the order value, Upstox applies a Flat Brokerage fee of Rs. 200/- per trade, along with the relevant taxes based on actual.

Check out our Upstox Review 2023 – Charges, Trading Charges, Annual Maintenance Charges, Trading Platform, Open Account, Account Types and More.

Upstox NRI Demat accounts CP Code

When an NRI (Non-Resident Indian) decides to dive into the exciting world of trading in the F&O (Futures and Options) segment of the exchange, there are certain procedures they need to follow. They must approach the exchange through a clearing member, who will act as their intermediary for clearing trades and facilitate the process. This clearing member will play a crucial role in obtaining a custodial participant (CP) code for the NRI.

Once the application is submitted by the clearing member on behalf of the NRI, the clearing corporation will review it and assign a unique CP code to the NRI customer. This code serves as an identification for the NRI’s trades and ensures smooth and efficient clearing and settlement processes.

It is important to note that an NRI client can have only one clearing member at any given point in time. This requirement ensures a streamlined and accountable relationship between the NRI and the clearing member, facilitating proper trade execution, risk management, and compliance with regulatory guidelines.

Open an account with Angel One and Zerodha, two other popular brokers in India.

Upstox NRI Demat Accounts – Terms & Conditions

1. NRIs can only have an active relationship with a single bank at any given time, and PIS (Portfolio Investment Scheme) approval can only be obtained from one bank.
2. NRIs are not permitted to participate in BTST (Buy Today Sell Tomorrow) trading.
3. NRIs are restricted from engaging in intra-day trading. They are only eligible for delivery trading.
4. NRIs must possess 100% of the required funds at the time of purchasing securities, and no margin or exposure is provided. Similarly, during selling, NRIs must possess 100% of the stocks being sold, and short selling is not allowed.
5. The investment limit for NRIs is capped at 5% of the company’s paid-up capital. Additionally, certain scrips are not available for purchase by NRIs under this regulation. The RBI website provides a report listing these restricted securities: http://www.rbi.org.in/scripts/BS_FiiUSer.aspx
6. NRIs are required to make bill-to-bill payments, and no adjustments can be made by offsetting purchase against sale consideration. Purchase and sales transactions must be treated separately for payment and receipt purposes.
7. FNO (Futures and Options) transactions for NRIs can be routed through NRO NON PIS, i.e., through an NRO savings account. For FNO transactions, NSE assigns a separate code that must be entered along with the client code when placing an FNO order for NRI clients.
8. IPOs and mutual funds can be applied for using a non-PIS route, specifically through an NRE/NRO savings account.
9. The contract notes of NRIs are reported daily to their respective bank, which, in turn, reports them to the RBI. Reporting responsibilities are handled by RKSV. In this scenario, RKSV provides the contract note to HDFC Bank (Nodal Bank), and HDFC Bank reports the information to the RBI.

It is important to note that Upstox NRI Demat accounts are regulated by both SEBI and RBI. Non-compliance with the defined parameters is considered a serious offense and is treated as a violation under FEMA (Foreign Exchange Management Act).

Check out our article on Upstox vs Paytm Money: Comparison of Plan Options, Brokerage Charges, Transaction Charges, Account Features and More.

Conclusion

Upstox NRI Demat accounts serve as essential tools for NRIs to securely hold and manage their financial assets in India. Tailored to meet the specific needs of NRIs, these accounts provide numerous benefits, including the ability to trade and invest in the Indian economy, automatic updates of stock market investments, and options for repatriation of funds. By complying with the necessary regulations, NRIs can effectively engage in the Indian securities market while ensuring legal compliance.

Check out our YouTube video on Upstox vs Zerodha vs Angel One vs Groww vs Paytm Money.

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