How Can NRIs Open a Joint Demat Account

For Non-Resident Indians (NRIs), participating in the Indian stock market requires a demat account linked to either a Portfolio Investment Scheme (PIS) or a Non-PIS route, as per Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) guidelines. While opening an individual demat account is straightforward, opening a joint demat account comes with specific conditions and documentation requirements. Understanding these rules ensures compliance and smooth account operations.

Yes, NRIs can hold a joint demat account in India, but with certain restrictions. The joint holders can be:

• NRI with NRI – Both account holders are NRIs.
  

• NRI with Resident Indian (RI) – Permitted in certain cases, typically for “Either or Survivor” operational mandates, subject to FEMA guidelines.
  

• NRI with Overseas Citizen of India (OCI) – Treated at par with NRIs for account-holding purposes.
  

However, the account must adhere to RBI’s foreign investment rules, and all joint holders must be compliant with Know Your Customer (KYC) and FATCA norms.

Broadly, NRIs can open:

1. Repatriable Joint Demat Account – Linked to an NRE (Non-Resident External) account, allowing repatriation of funds abroad.
   

2. Non-Repatriable Joint Demat Account – Linked to an NRO (Non-Resident Ordinary) account, with limited repatriation (as per RBI limits).
   

The choice depends on whether you wish to freely transfer funds abroad or keep them within India.

According to FEMA and SEBI norms, permissible joint holders in an NRI demat account include:

• Parents, spouse, siblings, or close relatives.
  

• Partnerships must comply with the legal definition of “relative” under the Companies Act, 2013.
  

• Minors can be joint holders under guardianship, but operational restrictions apply

Opening a joint demat account as an NRI requires:

• Proof of Identity – Passport (with valid visa/OCI card).
  

• Proof of Address – Overseas and Indian address proof.
  

• PAN Card – Mandatory for all holders.
  

• FATCA Declaration – As per income tax requirements.
  

• Photographs – Recent passport-sized images.
  

• Relationship Proof – If required, for verifying joint holder eligibility.
  

• FEMA Declarations – For regulatory compliance.
  

If opening through the PIS route, approval letters from an authorised bank are also required.

To begin the process smoothly, follow these steps in sequence:

1. Select a Depository Participant (DP) – Choose a SEBI-registered DP offering NRI services.
   

2. Fill Out the Joint Account Application Form – Include details of all holders.
   

3. Submit KYC and Documents – Provide all required ID, address proofs, and declarations.
   

4. Choose Repatriable or Non-Repatriable Status – Based on your investment and fund transfer needs.
   

5. In-Person or Video Verification – As mandated by the DP.
   

6. Account Activation – Upon approval, account details and login credentials are shared.
   

Here are some common hurdles you may face and ways to overcome them:

• KYC Mismatches – Ensure all names match across documents.
  

• Incomplete Relationship Proof – Keep supporting documents ready.
  

• Delays in Overseas Courier Dispatch – Use priority delivery for faster processing.
  

• Notary & Attestation Issues – Get documents attested by the Indian Embassy, Consulate, or authorised officials abroad.
  

NRIs can open joint demat accounts in India by following RBI, SEBI, and FEMA guidelines, ensuring the right type of account (repatriable or non-repatriable) is chosen, and submitting all necessary documentation. A well-prepared application can help avoid delays, enabling smoother participation in India’s securities market.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.