The Portfolio Investment Scheme (PIS) is a regulatory framework established by the Reserve Bank of India (RBI) to allow Non-Resident Indians (NRIs) to invest in Indian stock markets by buying and selling shares listed on recognised stock exchanges.
A PIS letter is a formal authorisation issued by the bank where the NRI holds their NRE or NRO account, and it is mandatory for executing transactions under the PIS route.
| Function | Description |
|---|---|
| Regulatory compliance | Ensures all transactions conform to RBI guidelines for NRI equity investments |
| Bank reporting | Enables the bank to report each buy/sell transaction to RBI on a daily basis |
| Segregation of investments | Distinguishes PIS-based trades from other transactions for tax and audit clarity |
| Scenario | What you should know |
|---|---|
| You want to invest using an NRE account under PIS | You'll need a PIS letter issued by your bank |
| You opt for a Non-PIS account (NRO) | A PIS letter is not required for NRO Non-PIS investments |
| You don't know how to obtain a PIS letter | FYERS can coordinate with its banking partners (e.g., Yes Bank, HDFC Bank) to facilitate this process on request |
To initiate your NRI account setup and request assistance with obtaining a PIS letter, submit your details here.