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Portfolio Investment Scheme Account

With the portfolio investment scheme, you can purchase and sell shares and debentures of Indian companies on a recognised stock exchange on a repatriation or non-repatriation basis. You can also access this account at any time online. For a detailed list of features and benefits for the same, refer to the points listed below.

Features & Benefits
Documentation
Fee & Charges
FAQs

Features & Benefits

Buy and sell on a recognised stock exchange in India

You can buy and sell shares or convertible debentures through a registered stockbroker on a recognised stock exchange in India.

Complete your transactions with ease

The account will assist NRIs like you in getting your transaction done in a smooth, seamless and hassle-free manner.

Enjoy low costs and RBI compliance

Low cost of transaction

Seamless reporting to RBI and complying with all statutory regulations on your behalf

Stay compliant with applicable tax laws

Calculation of capital gains tax and issuance of tax deduction certificate

Authorise a friend or relative to operate the account

You can authorise a friend or relative to operate your account using the Power of Attorney (PoA) facility.

Access your account at any time

24x7 account access through secure internet banking facility and free iConnect

Avail of our new set off facility

Enhanced Set-Off Facility at Portfolio level

To cater to the specific needs of NRI customers like you and provide value-added benefits, we have now started offering an enhanced set-off facility.

Enhanced Set-Off Facility at Portfolio level

In order to cater to the specific needs of the NRI customers and provide value added benefits, we have now started offering Enhanced Set-off facility to all the NRIPIS customers at portfolio level w.e.f 1st April 2016. The enhanced set off facility will be applicable only for short term equity transactions and will be available for the entire financial year.

salient features:

Losses to be carried forward till last day of the current Financial Year.
Losses from NRE A/c can be adjusted against profits from NRO A/c & vice –versa
Set-off of losses against future profits.
Set-off of short term losses at portfolio level.
Detailed Capital Gains statement at Customer ID level.
- Single statement at a Customer ID level instead of account level.
- Detailed computation of set-off.
- Details of carried forward losses in each account.

Transferring Money in and out of the account

When you have a Portfolio Investment Scheme Account, you must know how to transfer funds in and out of the account. Given below is the permissible list of Portfolio Investment Scheme Account money transfers for both credits and debits. It also lists where you can add funds to your account.

By foreign inward remittance by way of TT, DD, cheque, Travellers cheque, foreign currency, etc., or transfer from existing NRE accounts or FCNR accounts.

Non-resident External (NRE):
- Inward remittances in foreign exchange through normal banking channels
- Transfer from the applicant’s other NRE accounts or Foreign Currency Non-resident (FCNR) Accounts maintained with an Authorised dealer (AD) bank in India.
- Dividends or income generated from investments made through the PIS are also part of the financial transfers enabled by the PIS account, demonstrating its comprehensive coverage for investors.
- The PIS account facilitates the transfer of net sale proceeds (minus applicable taxes) from shares and convertible debentures purchased on a repatriation basis under the Portfolio Investment Scheme and subsequently sold through a registered broker on the stock exchange.
Non-Resident Ordinary (NRO):
- It allows for inward remittances of foreign exchange via standard banking channels, enhancing the ease of Portfolio Investment Scheme money transfer operations.
- Transfer from the applicant’s other NRE accounts, FCNR accounts, or NRO accounts maintained with an AD bank in India.
- Dividends or income generated from investments made through the PIS are also part of the financial transfers enabled by the PIS account, demonstrating its comprehensive coverage for investors.
- The PIS account facilitates the transfer of net sale proceeds (minus applicable taxes) from shares and convertible debentures purchased on a repatriation basis under the Portfolio Investment Scheme and subsequently sold through a registered broker on the stock exchange.

Non-resident External (NRE)
- Any charges on account of sale/ purchase of shares or convertible debentures under PIS.
- Outward remittances of dividends or income earned.
- Amounts paid on account of the purchase of shares and convertible debentures on a repatriation basis on stock exchanges through a registered broker under PIS.
Non-resident Ordinary (NRO)
- Any charges on account of sale/ purchase of shares or convertible debentures under PIS.
- Outward remittances of dividends or income earned.
- Amounts paid on account of the purchase of shares and convertible debentures on a non-repatriation basis on stock exchanges through registered brokers under PIS.

Documentation

In order to open an account customer will have to submit the following documents

For NRI (Non Resident Indian)

Copy of valid passport (pages with your name, address, date of birth, date and place of issue, expiry date, photograph, address, signature and observation page, if any)
Proof of NRI status, by way of valid Employment/Residence Visa copy or Work/Residence Permit
Copy of Indian PAN card
Proof of Overseas and Indian Address (as per Customer Identification Policy)
Recent passport size colour photograph

For PIO (Person of Indian Origin)

Copy of valid passport (pages with your name, address, date of birth, date and place of issue, expiry date, photograph, signature and observation page, if any)
Copy of Valid PIO/OCI card or any other proof of PIO status as per Customer Identification Policy
Proof of Overseas and Indian Address (as per Customer Identification Policy)
Duly signed and filled-in PIO declaration
Copy of Indian PAN Card
Recent passport size colour photograph

The address proof must match with the communication address selected by you on this Relationship Form.

List of Overseas Address proofs

Passport
Bank statement (not more than 3 months old from the date of application) of Overseas or India based bank.
Valid Permanent Overseas Driving License
Credit Card statement (not more than 3 months old)
Company ID Card indicating the address
Certificate from Indian Diplomatic Mission stating the contact address
Government ID card (SSN / Green Card / PIO card / OCI card)
Utility bill (electricity/ gas/phone/ water – not more than 2 months old from the date of application)
Appointment letter of overseas Employer Corporate.
Letter from foreign University stating the address(for on-campus lodging)
Registered Purchase / Sale Deed or agreement
Foreign Government issued Identity Card
Lease / Rent / Leave and License agreement indicating the address of the customer duly registered with Government or similar registration authority.
Valid employment contract letter.
Valid employment offer letter.
Employer’s certificate for proof of overseas address.
Letter from the government postal services confirming the address of the applicant.
Permanent Resident Permit / Work Permit mentioning the overseas address. Following are some of the residence permits that have the address Kuwait-Bataaka Madaniya (Civil ID), Saudi Arabia-Iqaama (Residential permit), Oman-Residence Card, UAE-Labour Card , Bahrain-CPR (Central Population registry) Card and Qatar-Residence Card, Singapore/Malaysia Permanent Resident Card

Any one of the following Indian address proofs

Passport (valid as on date)
Permanent Driving License, which is valid with the photograph affixed thereon
Voter's Identity Card (Election Card)
Job Card issued by NREGA duly signed by an officer of the State Government
Letter/Card issued by the Unique Identification Authority of India (UIDAI) containing details of name, photograph, address and Aadhaar number. Accordingly, either the physical Aadhaar card/letter issued by UIDAI received through post or the Aadhaar number validated through the e-KYC process is acceptable as an officially valid KYC document for onboarding the customer and for re-KYC purpose
Letter from National Population Register confirming details of Name , Address

Fee & Charges

To open a Portfolio Investment Scheme account, you also need to pay certain fees. In this section, you will learn about the fees and charges of the Portfolio Investment Scheme Account. In case you have any queries about the Portfolio Investment Scheme Account, get in touch with us.

Fees & Charges (w.e.f. 01/05/2014)
PIS issuance charge:	₹1,000*
PIS Account maintenance charge:	₹1,500#
Reporting charge:	₹150 will be levied per trade date. This is separate for purchase and sale irrespective of transacted quantity or value.

*Issuance charge waived off for Priority Banking, Wealth and Burgundy customers.

A reporting charge of ₹100 will be levied per trade date. This is separate for purchase and sale irrespective of transacted quantity or value for wealthy customers. A reporting charge of ₹75 will be levied per trade date - separate for purchase and sale irrespective of transacted quantity or value for Burgundy customers. For further details, download the Schedule of charges for NRI accounts.

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Frequently Asked Questions

The Portfolio Investment Scheme (PIS) allows you, as an NRI, to purchase and sell shares and convertible debentures of Indian companies on a recognised stock exchange. To do this, you must route your purchase and sale transactions through your account with a designated bank branch. Defined in Schedule 3 of the Foreign Exchange Management Act (FEMA), 2000, the scheme is governed by the Reserve Bank of India. (Note: Since 29th November 2001, the RBI has restricted OCBs from making fresh purchases. However, they can continue holding or selling their existing investments.)

No.

No. PIS account can not be a joint account.

No. NRIs cannot sell without taking delivery of the shares/convertible debentures purchased. Short selling is not permitted under PIS.

Yes. Investment can be made on repatriation as well as non-repatriation basis.

NRIs can assign only one designated bank for routing the transactions under NRE PIS. NRIs cannot maintain NRE PIS accounts with different authorised dealers.

NRIs will have to off load such portion of the holding, which is in excess of the prescribed limit.

Yes. As an NRI, you can purchase up to a maximum of 5% of the paid-up capital of a company and a maximum of 5% of the paid-up value of each series of debentures on a repatriation basis. Additionally, you can hold up to a maximum of 10% of such holdings or any higher percentage permitted for a particular company. Shares or debentures acquired through the primary market are excluded from these limits.

Yes, you can receive shares in inheritance as an NRI. Permission from RBI is not required and the shares will be held on a non-repatriable basis.

If you purchased shares through primary or secondary markets as a resident, they will be held on a non-repatriation basis. Once you become an NRI, these shares can be credited to your NRO (non-resident Ordinary) Demat account. You can sell these shares in the secondary market without requiring PIS permission. The sale proceeds will be credited to your NRO Savings Account after the payment of capital gains taxes.

No, as an NRI, you can purchase shares in the primary market on a repatriable/non-repatriable basis. The application money can be paid through a regular Non-resident External Savings Bank Account/ Non-resident Ordinary Savings Bank Account (NRE SB/NRO SB Account) or inward remittance.

The Reserve Bank of India monitors the investment position of NRIs/FIIs in listed Indian companies, reported by designated banks, on a daily basis. When the total holdings of NRIs/FIIs under the Scheme reaches the limit of 2 percent below the sectoral cap, Reserve Bank will issue a notice (caution list) to all designated branches of designated banks cautioning that any further purchases of shares of the particular Indian company will require prior approval of the Reserve Bank. Once the shareholding by NRIs/FIIs reaches the overall ceiling / sectoral cap /statutory limit, the Reserve Bank places the company in the Ban List. Once a company is placed in the Ban List, no NRI can purchase the shares of the company under the Portfolio Investment Scheme. List of caution/banned RBI script is available at https://www.rbi.org.in/scripts/FiiUSer.aspx

No. A new Section 112A is proposed to tax LTCG on gain on transfer of listed equity shares @ 10%, for gains in excess of Rs. 1 lakh. This provision is applicable from April 1, 2018.

The bank is required to deduct tax from the capital gains on sale of shares at specified rates of 15% (plus Health and Education Cess @ 4%) on short-term capital gains.

Shares purchased under PIS on stock exchange shall be sold on stock exchange only. Such Shares cannot be transferred by way of sale under private arrangement or by way of gift (except by NRIs to their relatives as defined in Section 6 of Companies Act, 1956 or to a charitable trust duly registered under the laws in India) to a person resident in India or outside India without prior approval of the Reserve Bank of India.

Yes, as an NRI, you can invest in the futures and options segment of the exchange using rupee funds held in India on a non-repatriation basis. This is subject to the limits prescribed by the Securities and Exchange Board of India (SEBI).

FEMA provisions allow Indian companies to issue Rights / Bonus shares to existing non-resident shareholders, subject to adherence to sectoral cap as may be applicable.

As per section 6(5) of FEMA, as an NRI, you can continue to hold the securities which you had purchased as a resident Indian, even after you become a non-resident Indian, on a non-repatriable basis.

Yes. It is your responsibility to inform the change of status to the designated authorised dealer branch through which you made the investments in the Portfolio Investment Scheme and the DP with whom you opened the Demat Account. Subsequently, a new Demat Account in the resident status will have to be opened. Securities should be transferred from your Demat Account to the resident account, and then the NRI Demat Account.

The enhanced set-off facility allows you to nullify current losses on PIS transactions against future profits, helping you save on capital gains tax. This facility is offered at the portfolio level during the financial year.

Salient Features:

Losses can be carried forward until the last day of the current financial year.
Losses from your NRE account can be adjusted against profits from your NRO account, and vice versa.
Set-off of losses is available against future profits.
Short-term losses can be set off at the portfolio level.
You will receive a detailed capital gains statement.

A single statement will be provided at the customer ID level instead of the account level.
Detailed computation of set-offs is included.
Carried-forward losses for each account are clearly detailed.

Yes, the enhanced set-off facility is provided at the portfolio level during the financial year. This means losses on NRO PIS transactions can be set off against profits in NRE PIS transactions, and vice versa. However, please note that losses can only be set off against future profits and not against earlier profits.