PIS vs Non-PIS Accounts: A Comprehensive Guide for NRIs

PIS vs Non-PIS Accounts: A Comprehensive Guide for NRIs

What is a PIS account?
The Portfolio Investment Scheme (PIS) is a scheme regulated by the Reserve Bank of India (RBI) that allows NRIs to buy and sell shares or convertible debentures of Indian companies through stock exchanges.

What is a Non-PIS account?
A Non-PIS Account is used for investments outside the PIS framework. It is generally used for transactions that do not require RBI reporting, such as IPOs, mutual funds, and non-PIS equity investments.

Differences between PIS and Non-PIS Accounts (AMC, Brokerage, and Other Features):

FeatureNRE PISNRE Non-PISNRO PISNRO Non-PIS
AMC Charges
Higher than Non-PISLower than PISHigher than Non-PISLower than PIS

Brokerage Charges

of the order value

Lower than PIS with fixed pricing

 N/A

Lower than PIS with fixed pricing

Sovereign Gold Bonds (SGBs)

Cannot be bought, existing units can be held or sold until maturity

Cannot be bought, existing units can be held or sold until maturity

Cannot be bought, existing units can be held or sold until maturity

Cannot be bought, existing units can be held or sold until maturity

Currency & Commodity

Not allowed

Not allowed

Not allowed

Not allowed

Pledging Securities as Collateral

Not allowed

Not allowed

Not allowed

Not allowed

(Investment and Transactional Features)

Investing in Direct Stocks

Allowed

Not allowed

Allowed

Allowed

Shareholding Restrictions

Subject to RBI cap on NRI shareholding

Not applicable

No restrictions

No restrictions

Mutual Funds

Allowed

Allowed

Allowed

Allowed

Repatriation Limits

No restrictions

No restrictions

Limited to $1 million per financial year. Requires Form 15CA & 15CB.

Limited to $1 million per financial year. Requires Form 15CA & 15CB.

Trading in F&O

Not allowed

Not allowed

Not allowed

Allowed

Intraday Equity

Not allowed

Not allowed

Not allowed

Not allowed