What is the role of a PIS letter for NRIs in stock investments?
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.
Why the PIS letter is important?
| 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 |
What if...
| 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 |
While NRE PIS accounts require RBI compliance via the PIS route, NRO Non-PIS accounts offer a simpler path to investing without daily RBI reporting. Choose based on whether you need repatriability or simplified access.
To initiate your NRI account setup and request assistance with obtaining a PIS letter, submit your details here.
Last updated: 24 Jun 2025
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