Yes, US-based NRIs are allowed to open demat account in India. An NRI Demat account can be opened by a Non-Resident Indian (NRI), Overseas Citizen of India (OCI) or Person of Indian Origin (PIO) living in any country abroad.
The demat account is used to electronically hold the securities including shares, mutual funds, and bonds. It is similar to the bank account but instead of money, a stock market investor keeps shares in the demat account. Demat account offers a safe, fast and convenient way to hold securities for online transactions.
