Portfolio Investment Scheme (PIS) is a scheme of the Reserve Bank of India defined in Schedule 3 of the Foreign Exchange Management Act 2000. PIS permits NRIs to invest in stocks and mutual funds through exchange houses in India. As per the scheme, NRIs can purchase and sell shares of Indian companies on stock exchanges. You can get a PIS permission letter with the help of the bank in which you have your NRE/ NRO account. You can apply for the PIS permission letter at a bank authorized by the RBI to administer the PIS.
A PIS account is a no minimum balance account and a competitive charge scheme. NRIs can get instant Portfolio Investment Scheme Permission (PIS) Letter. The NRE PIS account is mandatory for NRIs/ PIOs planning to trade/ invest in stocks in India using their income earned abroad. All PIS route stock transactions are executed through a designated branch of the bank, which deals in portfolio investments. All the transactions are reported to the RBI.
Who can open an NRE PIS account?
NRIs, PIOs, and OCIs can open an NRE PIS account in India to invest in the Indian stock market on a repatriation basis. Each transaction in this account is reported to RBI by the bank.
Documents required for NRI PIS application
An NRI will need copies of self-attested documents as under for PIS permission:
- Self-attested valid passport and visa copy of the principal applicant.
- Copy of PIO or OCI card (only for PIS and OCIs)
- A copy of PAN Card if not updated in NRI bank account
Is the PIS permission required for an NRO account?
No, PIS permission is not required for an NRO account. While earlier NRIs had to open NRE and NRO accounts under the PIS scheme, now the Reserve Bank of Indian has relaxed the regulatory norms for NRO account holders to conduct transactions easily without following PIS rules. Transactions are done through an NRI savings account and NRI Demat account with the bank and stock exchange, respectively.
Note: NRIs who don’t have a PIS Letter can open the NRO non-PIS account.
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