According to the Securities and Exchange Board of India (SEBI), all share-related transactions are to be mandatorily done via Demat accounts. If you are a Non-Resident Indian (NRI) investor, then you can choose between a repatriable or a non-repatriable account. The major difference between the two is the transferability of assets overseas. 


Non-repatriable Demat accounts do not allow transfer of assets/funds overseas but come with their own set of features. Read on to learn more about this type of Demat account in the following sections.

Non-Repatriable Demat Account Explained

A non-repatriable Demat account is a type of Dematerialized (Demat) account specifically designed for Non-Resident Indians (NRIs) who wish to invest in the Indian stock market and other eligible securities.


The key feature of a non-repatriable Demat account is that it does not allow the repatriation of funds, meaning the funds invested and the profits earned in this account cannot be transferred or repatriated to the NRI's foreign bank account. Instead, the funds and earnings must remain within India.

Features of a Non-Repatriable Demat Account

A non-repatriable Demat account is designed for Non-Resident Indians (NRIs) who wish to invest in the Indian stock market and other securities without the option of repatriating funds to their foreign bank accounts. Here are the key features of a non-repatriable Demat account:

  • For NRIs, PIOs, and OCIs

Non-repatriable Demat accounts are open to Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs).

  • Investment in Indian Securities

NRIs can use a non-repatriable Demat account to invest in a wide range of Indian securities, including stocks, mutual funds, bonds, and other eligible financial instruments.

  • Funds Must Remain in India

The distinguishing feature is that the funds used for investments and any earnings from those investments must remain within India. These funds cannot be repatriated to the NRI's foreign bank account.

  • Joint Holding

NRIs can hold a non-repatriable Demat account jointly with another NRI or a resident Indian. However, certain restrictions may apply, especially for specific types of securities.

  • Nomination Facility

Account holders can nominate a person to receive the securities and funds held in the account in case of the account holder's demise.

  • Tax Considerations

NRIs should be aware of the tax implications associated with their investments in India. Different types of investments may have varying tax treatments, and tax benefits may be available depending on Indian tax laws and double taxation avoidance agreements (DTAA).

  • Power of Attorney (PoA)

NRIs can appoint a Power of Attorney (PoA) to manage their account and make investment decisions on their behalf. This allows NRIs to delegate authority to make investment decisions based on their preferences.

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FAQs on Non-Repatriable Demat Account

The primary difference between the two types of Demat accounts is the ability to transfer funds abroad. While repatriable Demat accounts allow transferring funds overseas, non-repatriable ones do not permit this, with the exception of dividends and interest earnings.

In order to offload their securities in their home country, NRIs can either convert their resident Demat account into an NRO one or keep them stored in their resident accounts. Alternatively, they can send them to relatives in India and close the resident account.

Documents such as your PAN card, passport-sized photograph, identity proof, foreign address proof, income proof, PIO/OCI card, and more will be required to open this Demat account.

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