NRI Vs Resident Indian Demat Accounts.

Hi,

Can someone please explain the difference between the two? Is an NRI demat account exempt from tax?

I read that a US NRI cannot trade in the Indian stock market. Well, isnt there a simple solution to this? Why doesnt the US NRI open a 3-in-1 ICICI or HDFC or whatever account using his Indian address? The bank need not be told that he is an NRI. Isnt that a solution? Or is that illegal?

Pls advice.

No replies? No one knows the answer?

It is illegal, NRI's have to pay more on brokerage if they are trading from outside India. I don't know if a US NRI can trade online or not.