Why PIS account is required?

So What is PIS Account? According to Schedule 3 of the Foreign Exchange Management Act 2000, NRIs can purchase and sell shares as well as convertible debentures of companies registered in India via a recognised stock exchange, by routing these transactions through their account with a designated bank branch.

What is the use of PIS account?

PIS or portfolio investment scheme account is an account to be opened by NRI’s if they want to invest in stocks directly. This PIS account allows NRIs to buy and sell shares and convertible debentures of Indian companies on BSE & NSE by routing such transactions through their NRE/NRO bank account.

How can I apply for PIS account?

You can get the PIS letter with the help of the bank where you have opened your NRI/NRO account. To get the PIS permission letter, the NRI has to apply for it at a bank that the RBI has authorised to administer the PIS. All PIS route stock transactions are routed through a designated branch of the bank.

What is foreign portfolio investment scheme?

With the Portfolio Investment Scheme, you can purchase and sell shares and debentures of Indian companies on a recognized stock exchange under repatriation or non-repatriation basis.

What is the difference between PIS and non PIS account?

NRO PIS Bank Account and NRO Non-PIS Bank Account allows you to invest an NRIs foreign or Indian earnings in India on non-repatriation basis. While NRO PIS Account is specifically for investing in stock markets, the NRO Non-PIS Account can be used to invest in stocks as well as any other options in India.

Can NRIs buy HDFC bank shares?

No, as an NRI you can purchase shares in primary market on repatriable basis and application money can be paid through regular NRE SB Account or through inward remittance.

Do we need Pis for NRO account?

No, PIS permission is not required for an NRO (Non-Resident Ordinary) account. Previously, the NRI had to open NRE and NRO accounts under PIS regulated by RBI.

How many PIS accounts can an NRI have?

An individual NRI is authorized to operate only one NRE PIS Account. If under any circumstance, a Non-Resident Indian plans to open another NRE PIS Account or shift to a different bank, they would have to close their existing NRE PIS account.

Can I have multiple NRE accounts?

No, NRIs can only open one PIS account. However, they can open multiple NRE savings bank accounts. You can open only one NRE PIS accounts.

Can I open PIS account online?

With the Portfolio Investment Scheme, you can purchase and sell shares and debentures of Indian companies on a recognized stock exchange under repatriation or non-repatriation basis. You can also access this account at anytime online.

How does portfolio investment scheme work?

What is Portfolio Investment Scheme? PIS—a scheme of Reserve Bank of India— enables NRIs and OCBs to purchase and sell shares and convertible debentures of Indian companies on a recognized stock exchange by routing such purchase/sale transactions through their NRI Savings Account with a designated bank branch.

What is difference between FPI and FDI?

FDI refers to the investment made by foreign investors to obtain a substantial interest in the enterprise located in a different country. FPI refers to investing in the financial assets of a foreign country, such as stocks or bonds available on an exchange.

What is Portfolio Investment Scheme RBI?

Portfolio Investment Scheme (PIS) is a scheme of Reserve Bank of India defined in Schedule 3 of Foreign Exchange Management Act 2000. (With effect from 29/11/2001 RBI has restricted OCBs from making fresh purchases. They can however continue their existing holdings or sell off the same).

Is FPI and FII same?

Foreign Portfolio Investment (FPI) is similar to FDI in a way that this is also direct investment but investment in only financial assets such as stocks, bonds etc. of a company located in another country. Foreign Institutional Investor (FII) is an investor of group of investors who bring FPIs.