Does NRI required to change his resident Demat account to Non-resident?

As per section 6(5) of FEMA, an NRI can continue to hold the securities which they had purchased as a resident Indian, even after they have become a non-resident Indian, on a non-repatriable basis. However, in case an NRI wishes to make any fresh investments, an NRI cannot use the resident Demat account and is required to convert the existing Demat account to the Non-Resident Demat account.

An NRI can convert the existing Demat account to NRO Demat account for trading on a non-repatriation basis or open a new NRE Demat account for trading on a repatriation basis. Note the shares purchased as resident Indian can be transferred only to the NRO Demat account only and not NRE Demat Account.