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Yes, an NRI is legally allowed to operate a Demat account in India. The demat account helps NRIs to hold securities like Stocks, MF, ETF and Bonds in electronic form. A Demat account is mandatory for investing in the Indian stock market.
There are two types of Demat accounts for NRIs:
Demat account type which an NRI can opt for depending on whether an NRI wants to trade on a repatriation basis or non-repatriation basis.
A Demat account can be easily opened by approaching any bank or stock broker offering NRI services. The NRI account opening process is paper-based (not online).
Topic: NRI Demat Account Defenition
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