New Trading Account Requirement for Change in Residency Status

Is a new trading account required if an NRI becomes a resident or if a resident becomes an NRI?

In the event of a change in residency status, from non-resident to resident or vice versa, it is mandatory to open a new trading account that corresponds to the new residency status. The trading member must ensure the new account reflects the updated category code: '01' for Resident Individual and '11' for NRI, in accordance with the regulations.

For further clarification and regulatory references, you may consult:
• RBI Master Circular dated RBI/2010-11/13 dated July 01, 2010.
• FAQs hosted on RBI website www.rbi.org.in
• NSE Circular dated Nov 27,2003 , NSE/INVG/2003/4593
• NSE Circular dated Dec 21,2004 , NSE/MEM/5676
• NSE Circular dated Jul 04,2008 , NSE/INSP/10938

    • Related Articles

    • What steps should be taken if an Indian Resident becomes an NRI?

      When an Indian Resident changes their status to a Non-Resident Indian (NRI), they are required to: Notify the Status Change: Inform the designated authorized bank through which the investments were made as well as the brokerage firm, such as FYERS, ...

    • What should an NRI do upon becoming a resident in India?

      If you, as a Non-Resident Indian (NRI), gain resident status in India, you must undertake the following actions: Notify the Bank: Inform the designated authorised bank, through which you made your investments, about the change in your residential ...

    • How to re-activate my trading account?

      If your trading account has been inactive for more than two year, it may be deactivated according to SEBI guidelines. The process of reactivation is as follows: Log in to app.fyers.in. Click on 'Reactivate Account'. Select your Employment type and ...

    • Who is a custodial participant and how does it relate to NRI trading with FYERS?

      Custodial Participant (CP) refers to a clearing corporation member who validates trades on behalf of a client to the exchange. For Non-Resident Indians (NRIs), trading in Equity derivatives mandates having an account with a Custodial Participant and ...

    • Can an NRI link both NRE and NRO accounts to a single trading account?

      An NRI is permitted to open both NRE and NRO accounts with any bank that is authorized by the Reserve Bank of India (RBI). However, when it comes to linking these accounts to a trading account with FYERS, an NRI must choose to link either one — an ...