Is a PIS account mandatory for opening an NRO Demat Account?

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An NRO Demat account is linked with a Non-PIS NRO Bank Account. PIS permission is not required to open NRO Demat Account.

An NRO demat account is used for non-repatriable investments, ESOPs and to keep stocks from old resident Indian demat account. In an NRO Demat Account, the principal is not repatriable. The dividend/interest is repatriable. An NRO Demat Account is linked with an NRO Bank Account (Non-PIS). Transactions in an NRO Bank Account are not reported to RBI.

NRIs usually maintain two demat accounts; NRE and NRO Demat accounts. The NRE accounts for repatriable investments and NRO account for non- repatriable investments.


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