There are two type of NRI accounts. They are
a) NRE Equity Cash – Non Resident External – Repatriable account
b) NRO Equity Cash– Non Resident Ordinary – Non Repartiable account
NRE account – Any NRI may open a NRE account. The benefits of a NRE account is that the funds invested in NRE accounts are easily repatriable i.e it can be taken out of India easily. The fund invested in the NRE account has to be transfered from your overseas bank account and such NRE accounts cannot be funded with Indian money. There are also some restrictions on investments. Click here to know the stocks restricted for NRE investments.
NRO accout – The funds invested in a NRO account cannot be easily repatriated but has to follow certain procedures to take funds out of India. Funds can be repatriated up to $2 billion in a year. Investments are however more liberal in NRO accounts unlike a NRE account. To more on the difference click here . To know about how to repatriate the NRO funds to your overseas bank account click here