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, about the change in residency status.
- Open New Accounts: Proceed with the opening of new accounts that correspond to the NRI status, such as an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account, to manage future investments.
As per the guidelines of the Foreign Exchange Management Act (FEMA), NRIs are allowed to retain the securities and mutual fund investments they had acquired as residents, but these now have to be held on a non-repatriable basis.
For further details and to initiate the process of opening an NRI account with FYERS, please provide your details here.
Related Articles
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 ...
How are NRI investment positions in Indian companies monitored?
The investment positions of Non-Resident Indians (NRIs) and Foreign Institutional Investors (FIIs) in listed Indian companies are diligently monitored by the Reserve Bank of India (RBI). This surveillance is conducted on a daily basis through reports ...
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 can I update my mobile number and email address in FYERS as an NRI?
If you're an NRI and wish to change or update your mobile number and email address with FYERS, follow these simple steps: Log in to the My Account portal. Navigate to 'Manage Account'. Go to the email ID and Mobile number section and click on the ...
Is it permissible for NRIs to receive rights/bonus shares from Indian companies?
Under the Foreign Exchange Management Act (FEMA) guidelines, Indian companies are authorized to issue Rights and Bonus shares to their non-resident shareholders, provided that the issuance is in compliance with the applicable sectoral cap.