Non-resident Indians (NRIs) have the exciting opportunity to invest in the Indian stock market. To do so, you'll need to open an NRI Demat account, which is a specific type of account designed to hold electronic securities for NRIs.
Groww and NRI Demat Accounts
Groww is a popular online investment platform in India, but unfortunately, Groww currently does not offer NRI Demat accounts1. However, NRIs interested in Groww can join their waitlist here.
In the meantime, NRIs will need to consider other banks or brokerage firms in India that offer NRI Demat accounts.
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Overview of Groww Demat Accounts
Groww is an online trading platform in India where account holders can invest in stocks, mutual funds, SIPS, futures and options. Personal loans are also available for Indian residents.
Groww doesn’t provide services to NRIs yet. NRIs can consider other investment platforms or their Indian banks for NRI investment options. Any Demat account for an NRI will need to be linked to their Non-resident External (NRE) or Non-resident Ordinary (NRO) account.
Groww Demat account charges
NRI Demat accounts are not available, however here are some of the charges for a resident Indian Groww account2:
| Type of fee | Amount |
|---|---|
| Account opening charge | ₹0 |
| Account maintenance charge | ₹0 |
| Equity brokerage | 0.05% of the equity order or ₹20, whichever is less |
| Demat/remat | ₹150 per certification |
You can find the full list of fees and charges on the Groww website.
NRI Demat Account Considerations
- Account Opening and Maintenance Charges: Compare fees between different providers.
- Brokerage Fees: Factor in the trading fees charged by your chosen brokerage firm.
- Tax Implications: NRIs need to be aware of tax laws in both India and their country of residence. Consider consulting a tax professional for guidance.
Tax Consideration for NRIs investing in India
Any income earned in India by NRIs is taxable in India. When it comes to trading in securities, any income from the sale of securities is also subject to capital gains tax. NRIs can consider having a tax professional or chartered accountant to help navigate tax laws when residing abroad.
At the same time, NRIs must be mindful of tax compliance in their resident countries. India has entered into Double Taxation Avoidance Agreement (DTAA) with many countries to help NRIs avoid double taxation. Consult a tax expert in your resident country to avoid paying taxes in both countries.
Learn more in our guide to NRI taxes in India.
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Sources used for this article:
Sources verified on 12 February 2024.
Cover photo by Bram Naus on Unsplash.
This article is not intended to provide financial, tax or investment advice. Talk to a professional advisor to get customized advice so you can reach your investment goals.
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