NRE PIS Account Fund Transfer Process:

• The NRI transfers foreign currency (e.g., USD) to their PIS bank account (e.g., Axis Bank) and specifies the purpose as trading in equities.
• The PIS bank converts the foreign currency to INR and informs the broker (e.g., Jainam) about the trading limit.
• For example, $1,000 converted to ₹1, 00,000 sets the trading limit at ₹1, 00,000.
• The broker enables trading within this limit. If ₹50,000 is traded, ₹50,000 remains for future trades.
• At the day’s end, the broker sends the trade bill to both the client and the PIS bank, detailing the amount used (e.g., ₹50,000).
• The PIS bank settles the bill, transferring ₹50,000 to the broker and retaining ₹50,000 in the PIS account.
• Unused funds or profits can be withdrawn directly to the client’s NRE savings account, ensuring full repatriation.

NRO Non-PIS Account Fund Transfer Process:

• The NRI deposits INR directly into the NRO account (e.g., in Jainam’s setup, the client converts foreign currency to INR before depositing).
• These funds are linked to the broker, enabling direct trading without involving a PIS bank.
• Settlements are handled directly between the broker and the NRO account. For example, if ₹1,00,000 is deposited, ₹50,000 is traded, and ₹10,000 profit is earned, the remaining ₹60,000 stays in the NRO account.
• Withdrawals from the NRO account are non-repatriable,funds cannot be sent abroad.