How to Convert an NRI Demat Account to a Resident Demat Account?

If you plan to move back to India permanently or wish to stay for a longer duration, your residency status will change from NRI to a resident. As per the law, a resident cannot hold an NRI demat account, and an NRI cannot hold a resident demat account, meaning you will have to convert your NRI demat account to a resident demat account. 

It is mandatory to convert the account to ensure correct tax treatment, proper fund handling, and align the investment account with your new residential status. Additionally, since it is a legal requirement and not just a formality, non-compliance can lead to hefty penalties.