A change in the status from non-resident investor to a resident investor has to be registered with investment and service providers so that the required modifications can be made in the records of the investor.

2) You may need to update your Know Your Customer (KYC) information and provide necessary documentation to support your residency status

3) you will have to file complaint with SEBI and claim compensation fir delay in conversion of demat  account 

1)  If the trader or investor can prove that there was ‘negligence’ or ‘deficiency of service’ on the part of the broker, then he will have a cause of action to proceed against the broker.”

2) raise a ticket with your broker to claim compensation.

3)  take the complaint to Sebi through the Sebi Complaints Redress System (SCORES) portal at scores.gov.in.

4) Your complaint will be forwarded to the exchange, which will arrange for a conciliation meeting. Both sides will be given a chance to present their case. If no resolution is achieved at this forum, you can approach the Smart Online Dispute Resolution (ODR) portal, which will arrange a further mediation. If your issue is still not resolved, the last resort is to file for arbitration

If value of your shares had gone down drastically and you were unable to sell the shares on account of delay of broker in conversion of delay account you can claim that as loss 

Yes if it’s a deficiency of service then you can file consumer complaint. If he is not the service provider then you need to file civil suit 

You may be able to claim compensation from your broker for an inordinately delayed conversion of your demat account from NRI to RI. 

However, the specific details and requirements for claiming compensation will vary depending on the broker and the circumstances of the delay. 

If the delay is due to the broker's negligence, carelessness, or failure to follow proper procedures, it strengthens your claim.

You ma express your concerns about the delay in writing to the broker and request an explanation for the delay.

Many brokers have a grievance redressal mechanism. Follow their process for filing a complaint.

If the issue is not resolved through the broker's grievance redressal process, you may need to consider legal options, such as a complaint to the Securities and Exchange Board of India (SEBI) or a civil court.

While SEBI has regulations concerning investor protection and broker accountability, there isn't a specific circular directly outlining compensation for delays in demat account conversions. 

SEBI regulations focus on ensuring timely processing of transactions and adherence to KYC rules. 

To assess the loss due to delayed demat account conversion, calculate the difference between the potential profits or avoided losses you could have made, and the actual outcomes. 

This involves considering factors like missed trading opportunities, missed corporate actions, and any financial charges incurred due to the delay. 

Determine how much you could have gained or lost if you had been able to trade with your demat account during the delay period. 

Consider the stock prices, any market movements, and potential trading strategies.

Assess the actual gains or losses you made after the demat account was functional.

 Compare this with the hypothetical scenario to quantify the lost profit or increased losses. 

Sum up all the additional expenses incurred due to the delay. 

The stock market can be volatile, so the actual profits or losses during the delay period might be influenced by market fluctuations. 

Keep records of all communication with your broker and the DP to support your claim. 

Yes, you can claim compensation under SEBI rules for broker delay. Use SEBI Circular SEBI/HO/MIRSD/.../2023/32.

To calculate loss:

• Use average portfolio value × Nifty return over 3 months.

• Or show missed gains/dividends.

If exact loss is hard, claim for mental agony + opportunity loss with your follow-up records.

Dear Client,

Please see below the response to your query:

1. Case definetely falls under the bracket of 'Deficiency of service'

As per RBI guidelines NRI account should be immediately re-designated as Resident Accounts on change of residential status from NRI to Resident Indian.  The conversion process takes approximately 7 to 12 working days. The broker is supposed to send regular updates about the status of the conversion on your registered contact details.

In accordance with Section 2(11) of Consumer Protection Act, 2019 (defines deficiency of service), a delay by a bank in converting a demat account from NRI to resident status can be considered a deficiency in service, as it disrupts the customer's ability to manage their investments according to their residency status. In your case, there has been a significant delay of more than 3 months, which can lead to exorbitant losses. Depending on the quantum of claim, the case can be filed before District Consumer Disputes/ State/ National Redressal Commission.

The RBI Guidelines can be accessed from the following link: https://www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=3#:~:text=NRE%20accounts%20should%20be%20designated,be%20designated%20as%20NRO%20account. 

2. Brief overview of the SMART-ODR process for analysis of legal options

The Complaint/Dispute lodged through SMART ODR Portal shall mandatorily follow the process of Online Conciliation first and in case of unsuccessful conciliation, the same may be taken up for online Arbitration. In case the investor/client/Market Participant is aggrieved with the arbitration award, it may file an appeal before a competent Court of law under section 34 of the Arbitration and Conciliation Act, 1996.

3. Computation of damages

As per the Supreme Court (Arifur Rahman Khan and Aleya Sultana and Ors. vs. DLF), the word compensation includes actual loss or expected loss and may extend to compensation for physical, mental or even emotional suffering, insult or injury or loss. You are entitled to following losses:

• Financial loss- Since actual sale of shares wasn’t made, notional loss or opportunity loss is often considered. Alternatively, the method used can be- Average Portfolio Value × Monthly Interest Rate × No. of Months

• 
  Interest- Generally, the court grants 6 to 9 percent simple interest from the date of cause of action to the date of judgment. If not paid within one month from the date of the order, the interest usually increases to 12 percent.

• Harassment and inconvenience

• Litigation cost

Conclusion: The Consumer Protection Act, 2019 mandates that a complaint before the consumer commission should be disposed of as expeditiously as possible, with an endeavor to decide within three months from the date of the opposite party receiving notice. Therefore, if the conciliation is not successful at SMART-ODR stage, then it is advisable to file the case before the consumer court to have an expeditious relief within 3 months. Otherwise, arbitration under SMART-ODR can take more than a year, and you may also face issues in enforcing the award.

Please contact me for further clarification or for dealing with the case.