What is the Procedure for Transferring Shares From a Non-Resident to a Resident Account?

Fill out the securities transfer form ("STF"), also known as SH-4. It should have signatures of both the parties, i.e., transferor and transferee. Additionally, within two months of its completion, this form should be filled out and submitted to the company.

NRI Banking Services

What Is a Non-Repatriable Demat Account?

By Ritesh Jain |Last Updated: January 30, 2026

What Is a Non-Repatriable Demat Account?

To invest and trade in financial securities, NRIs need to open a repatriable or non-repatriable demat account. Being an NRI, if you wish to invest in the Indian stock market, you should have an understanding of both these types of demat accounts.

A non-repatriable demat account is used to hold the securities of NRIs. However, they cannot transfer their funds freely from their NRO account to their bank account outside India. In contrast, a repatriable demat account allows you to transfer your funds without any restrictions outside India.

Ritesh Jain(Tax Expert)

Mr. Ritesh has 20 years of experience in taxation, accounting, business planning, organizational structuring, international trade financing, acquisitions, legal and secretarial services, MIS development, and a host of other areas. Mr Jain is a powerhouse of all things taxation.

Frequently Asked Questions

A non-repatriable demat account is used when NRIs want to invest funds that remain in India. Through this account, you can freely transfer your principal and interest amount overseas. Additionally, it is mandatory to link your non-repatriable demat account to your NRO bank account.

When you move overseas and obtain an NRI status, you should close your existing resident demat account. Additionally, you can also convert it into an NRE or NRO demat account under FEMA guidelines.

No, a PIS account is not mandatory to open an NRO demat account for investment in the Indian stock market on a non-repatriable basis.

Yes, an NRI can open a joint trading account in India; however have certain restrictions. Considering this, the joint holder can be NRI with NRI, NRI with resident Indian- allowed in certain cases, generally for "either or survivor" operational mandates, subject to FEMA guidelines.

Repatriable demat accounts offer easy fund transfer without any restrictions and should be linked to a non-resident external (NRE) account for operations. In contrast, non-repatriable demat accounts restrict fund transfers within India and require linking with a non-resident ordinary (NRO) account for functioning. Further, both account types need a separate demat account for conducting their operations.

What Is a Non-Repatriable Demat Account?

Frequently Asked Questions

What is a Non-Repatriable Demat Account?

What Happens to a Resident Demat Account after Becoming an NRI?

Is a PIS Account Mandatory for Opening an NRO Demat Account?

Can an NRI Open a Joint Trading Account in India?

What is the Difference Between a Repatriable and a Non-Repatriable Demat Account?

What Is a Non-Repatriable Demat Account?

Frequently Asked Questions

What is a Non-Repatriable Demat Account?

What Happens to a Resident Demat Account after Becoming an NRI?

Is a PIS Account Mandatory for Opening an NRO Demat Account?

Can an NRI Open a Joint Trading Account in India?

What is the Difference Between a Repatriable and a Non-Repatriable Demat Account?