PIS and Non-PIS Accounts for NRIs
PIS Account
The Portfolio Investment Scheme (PIS) is a scheme by the RBI that allows NRIs and Persons of Indian Origin (PIOs) to buy and sell shares on a repatriation basis in the Indian stock market.
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Purpose: Facilitates trading of equity shares on a repatriation basis.
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Account Type: NRE PIS Bank Account.
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Applicability: Exclusively for NRIs, used only for trading in the equity segment of the Indian stock markets.
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Reporting: Transactions in the PIS account are reported to the RBI.
Non-PIS Account
A Non-PIS account is a standard NRI savings bank account (NRE or NRO) that can be opened with any bank in India.
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Purpose: To buy and sell equity shares and mutual funds on a non-repatriation basis.
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Account Type: NRE and NRO Savings Account.
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Applicability: Transactions in this account are not reported to the RBI. It can be used for investments in equity shares, IPOs, mutual funds, and bonds on a non-repatriation basis.
Differences between PIS and Non-PIS Accounts
| Feature | PIS Account | Non-PIS Account |
|---|---|---|
| Purpose | Buy/sell equity shares on repatriation basis | Buy/sell equity shares and mutual funds on non-repatriation basis |
| Transaction Reporting | Reported to RBI | Not reported to RBI |
| Account Type | NRE Savings Account | NRE and NRO Savings Account |
| Investment Scope | Secondary market transactions on repatriation basis | All payments excluding secondary market investments on repatriation basis |
| Share Transfer Requirements | Shares purchased as a resident must be transferred to a new demat account on non-repatriation basis | Shares purchased with Indian residential status can be transacted through Non-PIS Account |
For more details refer https://www.sbi.co.in/webfiles/uploads/nri/PIS_Application_06_December.pdf