What Is A Portfolio Investment Scheme For NRIs?

The Indian stock market is a lucrative investment avenue. Even NRIs can invest in it with Portfolio Investment Scheme (PIS). Let’s decode.

Portfolio Investment Scheme (PIS)

FEMA allows NRIs to buy and sell stocks and convertible debentures of companies listed on the stock exchange.

The RBI has devised the PIS account to allow NRIs do just that. First step is to open NRE and/or NRO savings account with IDFC FIRST Bank.

For investment on a repatriation basis, you have to open NRE PIS account linked to NRE savings account and a unique permission is issued. For investments on non repatriation basis, you have to open NRO settlement account linked to NRO savings account.

PIS rules:

• Under NRE, at a time only one PIS permission is permitted across all banks.
• Through repatriation mode only delivery based trades are permitted.
• Under NRO, no permission is issued only NRO settlement bank account is opened

• Investment is not allowed in companies engaged in agriculture, real estate, chit funds, etc.
• Investments through NRE category, cannot exceed 5% at individual capacity of paid up capital of company.

IDFC FIRST Bank offers industry-first instant PIS account through Mobile App in 2 clicks with NIL account opening charges and no AMC for First Year.