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Differences Between NRE and NRO Demat Accounts

NRE (Non-Resident External) and NRO (Non-Resident Ordinary) demat accounts are meant for NRIs but differ in purpose and fund handling. An NRE demat account is used to invest repatriable fundsu2014meaning profits and principal can be transferred abroadu2014and is linked to an NRE bank account. In contrast, an NRO demat account holds investments made with non-repatriable domestic income, such as rent or dividends earned in India, and repatriation from it is subject to limits and taxation.

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Differences Between NRE and NRO Demat Accounts

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  1. Differences Between NRE and NRO Demat Accounts Read blog - https://navia.co.in/blog/the-difference-between-nre-and-nro-accounts/

  2. Purpose & Repatriation NRE Demat Account: ● Ideal for investments using foreign income. ● Funds are freely repatriable (principal + interest). ● Used by NRIs looking to invest on a repatriation basis. NRO Demat Account: ● Meant for investing income earned in India (e.g., rent, dividends). ● Repatriation is restricted to USD 1 million per financial year, subject to taxes. ● Suitable for managing and investing domestic Indian income. Read blog - https://navia.co.in/blog/the-difference-between-nre-and-nro-accounts/

  3. Taxation, Funding & Compliance NRE Account: ● Taxable gains; TDS deducted by bank (with charges). ● Requires PIS account; transactions reported to the bank. ● Fund transfers handled by bank based on contract notes. ● Stricter FEMA compliance; joint holding allowed with another NRI only. NRO Account: ● Taxable gains; TDS deducted by Navia at no cost. ● PIS optional; no reporting to bank. ● Clients can transfer funds online via payment gateway. ● Flexible FEMA compliance; joint holding allowed with NRI or resident Indian. Read blog - https://navia.co.in/blog/the-difference-between-nre-and-nro-accounts/

  4. Trading Segments & Flexibility NRE Account: ● Eligible only for Equity Cash segment. ● No intraday or BTST (Buy Today, Sell Tomorrow) trading. ● No leverage or MTF (Margin Trading Facility). ● Funds must be available before placing orders. NRO Account: ● Eligible for both Equity Cash and Derivatives (F&O). ● Intraday and BTST trading allowed. ● Leverage and MTF available—can be enabled online. ● Use stock collateral or pre-fund to place orders. Read blog - https://navia.co.in/blog/the-difference-between-nre-and-nro-accounts/

  5. Summary – Which One to Choose? Choose NRE Demat Account if: ● You want full repatriability of funds. ● You’re investing purely from foreign income. ● You prefer conservative, regulated investing with fewer flexibilities. Choose NRO Demat Account if: ● You want broader trading access (F&O, intraday). ● You’re okay with limited repatriation. ● You earn income in India and want to use it for investments. ● You want the convenience of leverage, MTF, and flexible funding. Read blog - https://navia.co.in/blog/the-difference-between-nre-and-nro-accounts/

  6. Disclaimer Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are for illustrative purposes and are not intended as recommendations. Brokerage will not exceed the SEBI prescribed limit. Navia Markets Ltd ,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ-Registered office: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam High Road, Chennai - 600 034 Email ID: ig@navia.co.in - Contact No: +91 70100 75500 https://bit.ly/naviadisclaimer Read blog - https://navia.co.in/blog/the-difference-between-nre-and-nro-accounts/

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