What is the difference between a PIS and a NON-PIS account?

What is the difference between a PIS and a NON-PIS account?

AspectPIS (NRE)(Non-PIS) NRO
Savings Account
NRE Savings accountNRO Savings account
Purpose
Buy and sell equity shares on a repatriation basis.Buy and sell financial securities and mutual funds on a non-repatriation basis.
PIS Permission Letter
Required from RBI via partner bankNot required
Repatriability
Can be RepatriableNon-Repatriable
Instruments
Exclusively for shares traded on Indian stock exchanges.
Shares, equity futures & options, currency, commodities, and mutual funds
Investment RestrictionMaximum foreign or NRI shareholding in a company by RBI is applicable. Maximum foreign or NRI shareholding in a company by RBI is applicable.No such restrictions.
Fund Transfer
Funds from the bank must be transferred to the PIS account for investing and then will be available in the trading account. This may take up to 1 working day.You can directly transfer funds from an NRO account to a trading account using net banking.
Mutual Fund Investment
Not availableAvailable
Shares bought with resident status
Shares purchased as a resident Indian must be liquidated. A new demat account must be opened on a non-repatriation basis to purchase shares.Shares purchased with Indian residential status can be transacted through a non-PIS account.

RELATED FACTS:

  • NRI can purchase and sell shares of Indian companies on a recognized stock exchange by routing such purchase /sale transactions through their account with a designated bank branch For deposits & withdrawals with using NRO and NRE Account.
  • Investment can be made on repatriation as well as non-repatriation basis The investor will have to open an NRE account as well as an NRO account under PIS with the same designated bank.