What is an NRI demat account?

An NRI demat account is a demat account opened by a Non-Resident Indian (NRI), Person of Indian Origin (PIO) or Overseas Citizen of India (OCI) cardholder. It holds securities like stocks, mutual funds, bonds, etc. in electronic format.
NRI Demat account linked to NRE trading and bank account is NRI Repatriable Demat account and NRI Demat account linked to NRO trading account is NRI Non-Repatriable Demat account.

The corporate action benefits like dividend earned on securites in NRI Repatriable Demat account gets credited to linked NRE bank account and benefits earned on securities in NRI Non-Repatriable account gets credited to linked NRO bank account.