A new trading account is mandatory when your residency status changes — from Resident to NRI or from NRI to Resident. This requirement is set by SEBI and RBI to ensure the correct classification of accounts based on your current legal status.

Steps for changing from NRI to Resident

1. Notify your bank: Inform the designated authorised bank about your change in residential status, especially if your investments were routed through NRE/NRO accounts.
2. Inform FYERS: Update FYERS so your trading and Demat accounts can be modified accordingly.
3. Open a new resident account: Apply for a new Resident Demat and trading account.
4. Transfer your holdings: Move all securities from your NRI account to your new resident account before closing the NRI account.

Steps for changing from Resident to NRI

1. Close your resident trading account: This is mandatory as SEBI requires a separate account type for NRIs.
2. Open an NRO Non-PIS account: Link it with a valid NRO bank account to comply with RBI rules.
3. Update your KYC to non-resident: Submit supporting documents such as a passport, visa, and overseas address proof.

What if…