Addendum 4/4/12: In the comments below, readers will find discussions of whether Indian Demat accounts are reportable on Form 8938 and/or FBAR and whether they should be included in the penalty base in OVDP and OVDI. As of this posting on 4/4/12, I am not sure of the answers to these questions but will post in the blog itself if I get reasonably certain answers. Otherwise, readers should refer to the comments. For discussions as to the general characteristics of these Demat accounts, see the following:
- Securities and Exchange Board of India Frequently Asked Questions, here in html and here in pdf.
- Wikipedia, here.
Update on 4/11/12: See Sebastien Chain and Tamara Woods, Form 8938 – Foreign Reporting Trap for the Unwary (Tax Blawg 4/11/12), here.