The 60-second version
Your NRI demat cannot stay in PIS mode after you become resident. Brokers need PIS letter cancellation, resident savings linkage, and fresh KYC before you buy Indian stocks freely.
PIS must go
NRI equity investing runs through RBI Portfolio Investment Scheme with a designated bank. Residents cannot hold the PIS flag on demat — you redesignate or open fresh resident demat.
I surrendered PIS letter at my designated bank first, then asked broker to flip account to resident with resident savings bank mapping.
CKYC and PAN-Aadhaar linkage must be clean or broker onboarding stalls.
Still hold US stocks? Keep US brokerage guide separate from Indian demat workflow.
NRI demat vs resident demat
| Feature | NRI demat (PIS) | Resident demat |
|---|---|---|
| Bank linkage | NRE/NRO PIS account | Resident savings |
| Settlement | Through designated bank | Any linked bank |
| FEMA reporting | PIS letter required | Not applicable |
| ITR schedules | Schedule FA if foreign assets elsewhere | Capital gains Schedule CG |
| Broker choice | PIS-enabled brokers | Any SEBI broker |
Redesignation sequence
Confirm resident status date
Align with bank redesignation same week.
Surrender PIS at designated bank
Get closure letter for broker.
Submit resident KYC to broker
PAN, address proof, photograph, signature.
Link resident bank account
EMandate for SIP if needed.
Update ITR next year
Remove incorrect NRI schedules; add Indian capital gains.
PIS exit flow
Demat conversion kit
- PIS surrender letter.
- Resident savings account active.
- PAN-Aadhaar linked.
- Existing holdings statement.
- Nominee update post-conversion.
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Do not trade on PIS after residency
Buying after becoming resident without surrendering PIS is a FEMA compliance risk.
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Can I keep same demat number?
Often yes — redesignation rather than new account.
What about existing NRI holdings?
Holdings remain; account category changes.
Mutual fund folios separate?
Yes — redesignate MF KYC too via AMC or KRA.
OCI without Aadhaar?
Many brokers accept OCI + foreign passport; policies vary.
How long does conversion take?
7–15 business days typical with complete PIS surrender letter.
US person additional forms?
W-8BEN at US broker; India demat has separate FATCA at bank.
Your NRE account redesignation has a deadline.
Banks don't remind you. You need the right account stack before salary, rent, and EMIs start moving. Get the exact sequence.