Opening a demat account is a pain for NRIs. Zerodha and others are trying to simplify it.

How iron out such issues, Zerodha and Angel One have been working with Rupeeflo, a Bengaluru startup. Other brokers are also looking for ways to simply the process and encourage more NRIs to invest.

What are the main hurdles?

Opening a demat account requires an NRI to fill out forms, scan and email them to a broker for review. If the broker finds no errors, he asks the NRI to courier the form to the official address for processing. This can be cumbersome.

“The client is required to physically sign the form. If a soft-copy validation is rejected, they need to rectify and reshare it with us,” said Kazi Rahman, head of NRI sales at Zerodha.

NRIs also need to get their KYC documents verified. These include passport, foreign address proof, and PAN card. If the NRI is not in India at present, he can do this by having his documents notarised in his residence country and couriering them.

If the NRI is in India, he can visit the broker’s branch office with his notarised documents, submit the documents and open his account. Brokers such as Zerodha have also started to allow this through Aadhar-based e-sign facility. The client can digitally upload his documents along with his immigration details to establish his presence in India and then e-sign through Aadhar.

Digital process

Rupeeflo is working with brokers to create a digital-first process for NRIs to make this easier. Once a users upload his PAN card, passport and address proof, the platform’s optical character recognition technology automatically extracts the information, checks the authenticity of the documents against official databases and validates them in real time. It also fills up most details in the form automatically, directly extracting it from client’s documents. The NRI can review the application form and fill in the remaining details such as employer, occupation and nominee.

Next comes digital notarisation, for which Rupeeflo has partnered with several public notaries in various countries. “The NRI connects with the notary on the platform through video call, where the latter conducts the process in accordance with their jurisdictions’ specific regulatory norms and accordingly notarises the documents,” said Dharmendra Maurya, co-founder of Rupeeflo.

This digital notarisation is done in foreign jurisdictions, where there are guidelines for it. However, this is a regulatory and legal grey area that needs more clarity. More on that later.

Once the documents are notarised, the NRI can download both the application form and the notarised documents. After signing in required fields on the application form (wet signatures are still required) and the KYC documents, the user can schedule a courier pick-up on Rupeeflo. The form and the notarised documents are then sent to the broker’s operation centre for account opening.

Digital notarisation costs anywhere fro $20-40 per document. The courier charges for pick-up and delivery are $40-50. Total charges depend on the NRI’s country of residence.

“Opening a demat account as an NRI still involves considerable friction—physical forms, notarised documents, and courier logistics,”Nishant Jain, chief business officer – assisted business from Angel One. “We have simplified this journey by accepting digitally notarised documents, removing key friction points and enabling NRIs to onboard faster and more securely,” he added.

Regulatory grey zone

The current regulations allow NRIs to get their documents notarised abroad. However, there is no explicit rule that allows digital or remote notarisation.


In an e-mailed response to Mint, CVL (CDSL Ventures), a KYC registration agency, said, “As per extant Sebi regulations, CVL does not permit online KYC for NRIs not based in India. Further, it is the responsibility of the entity to ensure the location of the investor by geotagging the investor for online KYC.”

“Strict implementation of Indian legal provisions would require physical presence of an individual before the notary. The notary needs to see the original documents, verify the identity of person face-to-face, before putting his own seal and stamp certifying it as a ‘Sworn before me. Attested true copy’,” said Shashank Agarwal, an advocate at Delhi High Court.

“The Notaries Act, 1952 is silent as regards e-notarisation. The Notaries Rules, 1956 do not address or specifically deal with the acceptance or legal validity of notarised electronic documents. The Notaries Act, 1952 governs traditional notarization, and documents still need to be notarised “in person” to be valid,” said Yogesh Chande, partner at Shradul Amarchand Mangaldas.

At GIFT City, which is regulated by the International Financial Services Centres Authority (IFSCA), fintech companies conduct face-to-face KYC to onboard NRI clients. For instance, Belong, an NRI-focused payment service provider, has business facilitators in the UAE who meet NRI clients personally and verify their documents to comply with KYC guidelines. The current rules allow employees of regulated entity or agents acting on behalf of the regulated entity to use the ‘original seen and verified’ (OSV) process for KYC.