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
• 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