Portfolio Investment Scheme (PIS)

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PIS permits an NRI to invest in Stocks and Mutual Funds through stock exchanges in India. NRIs can invest on a repatriation or a non-repatriation basis through PIS.
Portfolio Investment Scheme (PIS) definition

Portfolio Investment Scheme (PIS or PINS) permits NRIs to invest in Stocks and Mutual Funds through stock exchanges in India. Under this scheme, all the transactions are reported to the RBI.

An NRI can invest in India stock market in both on repatriation or non-repatriation basis. For investment in repatriation basis, an NRI needs a PIS enabled NRE account. For investment in non-repatriation basis, an NRI needs a PIS enabled NRO account. Read about NRE Vs NRO account.

After opening the NRI bank account, an NRI has to fill a form 'Application for designating bank account for PIS' and submit it to the bank. Once approved, the requested bank account (NRE or NRO) is designated as PIS Account. All transactions in this account are reported to RBI. This account is now linked with NRI Demat and NRI Trading account for stock trading.

In the PIS registration process, an NRI appoints a specific branch of a bank as a Designated Bank for PIS.

An NRI Bank Account is designated as PIS Bank Account after the approval of the PIS application. The Reserve Bank has authorized only a few bank branches of the bank to conduct the business under PIS on behalf of NRIs.

Sample PIS Forms:

NRI should read the terms in these forms in detail to understand the limitations for PIS Account.


  • PIS account is not required for trading in Equity Derivatives (F&O) since the funds are settled through the Custodial. An NRI can use an NRO-SB to trade in F&O.
  • NRE PIS accounts and PIS PERMISSION should be held with only one bank at any given point in time.
  • NRE PIS account should not be used to route any other transactions besides transactions related to the purchase and sale of shares. All routine transactions, Demat charges, dividend warrants, etc should be routed through the regular NRE NON-PIS savings account held with the bank.

Transactions permitted under PIS

  • Purchase of shares in the Indian companies through Stock Exchanges as an NRI
  • Sale of shares, which were bought under PIS
  • Shares received under corporate actions such as stock split.

Transaction permitted under Non-PIS

  • Mutual Funds and IPOs.
  • Sale of shares, which were, acquired other than under PIS. A few examples are:
    • Shares acquired through IPOs/Right Issues/ ESOP.
    • Gifts from relatives or otherwise
    • Shares bought as resident Indian
    • Shares received in bonus

PIS Account (NRI PIS Bank Account)

An NRI Bank Account (NRE or NRO) is designed as a PIS Account once the PIS application is approved by the bank.

After opening NRI bank account, the customer has to submit a PIS application form to the bank for designating the Saving Account as PIS Account on repatriation/non-repatriation basis.

Non-PIS NRI Bank Account

The Non-PIS Accounts is an NRI Saving account without PIS permission from RBI.

When a customer opens an NRI Bank account (NRO or NRE), initially the account is known as an Non-PIS Account. Customers can fill the PIS application form, submit it to the bank and get the PIS approval on this account. Once the PIS permission is received, the account is designated as PIS Account.


  • Transactions from a Non-PIS account are not reported to the RBI.
  • The Non-PIS account can be used to sell shares which are not allowed under PIS. i.e. Shares bought when NRI was resident Indian
  • Shares acquired under IPO or received as a gift or bought as resident Indian can be sold under Non-PIS account.

Banks like Axis Bank makes it mandatory to open a separate Non-PIS account along with a PIS Account. Their popular offering is a 4-in-1 Account which includes:

  • NRI Saving Bank Account (Non-PIS)
  • NRI Saving Bank Account (PIS)
  • NRI Demat Account
  • NRI Trading Account
Answered on


  1. 1. Can an NRI invest in shares listed in the stock exchanges in India?

    Yes. NRIs (including PIO and OCI Card holders) can invest in the India Stock Market. The investment has to be done under the Portfolio Investment Scheme (PIS). Some of the key rules relating to this scheme are as given below:

    • Shares purchased under PIS shall be sold on stock exchanges only.
    • These trades can be done only through a registered broker.
    • NRI shall designate a branch of a bank and route all his transactions through this branch.
    • An NRI can purchase shares up to 5% of the paid-up capital of an Indian company.

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  2. 2. How to transfer bonus shares from PIS to Non-PIS Account?

    Bonus shares cannot be sold through PIS account. You need to transfer them to Non-PIS Account to sell them.

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  3. 3. What documents are required for NRI PIS Application?

    An NRI need following self-attested copies of the document for PIS permission:

    • Valid Passport and visa Copy of main applicant self-attested
    • PAN Card Copy if not updated in SB account
    • Copy of PIO/OCI card (only if the customer is Person of Indian Origin)

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  4. 4. Can I have multiple PIS linked accounts?

    No. As per the RBI guidelines, an NRI can have one and only one Portfolio Investment Scheme (PIS) linked bank account. If you would like to open a PIS account with another bank, you will have to close the existing PIS account first.

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