What should an NRI do upon becoming a resident in India?
If your residential status changes from Non-Resident Indian (NRI) to Resident Indian, it is important to update your investment setup and ensure full compliance with Indian regulations. Here are the key actions to take for a smooth transition.
Steps to follow when you become a resident
| Action | What you should do |
|---|
| Notify your bank | Inform the designated authorised bank that your residential status has changed. This is especially important if you had investments routed through an NRE/NRO account. |
| Inform FYERS | Notify us about the status change so that your trading and Demat accounts can be updated accordingly. |
| Open a new resident account | Begin the process of opening a new Resident Demat and trading account in accordance with your new status. |
| Transfer your holdings | Transfer all securities from your existing NRI account to your newly opened Resident Demat account before closing the NRI account. |
What if...
| Scenario | What you should know |
|---|
| You continue trading from an NRI account | This can lead to regulatory non-compliance under FEMA and SEBI norms |
| You fail to transfer securities | Your NRI account cannot be closed until all holdings are moved |
| You were trading in F&O | You'll need to re-activate the F&O segment in the resident trading account, subject to new KYC |
Keep a checklist of your bank details, Demat account information, and PAN ready for faster processing.
Last updated: 25 Jun 2025
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