Benefits of Portfolio Investment Scheme (PIS)

 There are many schemes and offers for Non-Resident Indians (NRIs) to buy property, mortgage or apply for loans. Similarly, for investing in Indian stocks and bonds the NRIs can apply for the scheme given by the Reserve Bank of India (RBI), that is the Portfolio Investment Scheme (PIS).

What is the Portfolio Investment Scheme (PIS)?

The Reserve Bank of India (RBI) enables NRIs to invest in stocks and mutual funds of their favorite companies in India through a recognized stock exchange by directing these transactions through their NRI savings accounts. However, they should have these NRI savings accounts with designated bank branches only which are present worldwide.

Let’s see what the Portfolio Investment Scheme comes with:

  • For transactions through a recognized stock exchange, the NRIs would need to set up NRI savings account with the designated bank having a global presence, like SBM Bank.
  • For portfolio investments in the secondary market through:
  1. Repatriation channel, an NRE savings account (Non-Resident External) is required.
  2. Non-repatriation channel, an NRO account (Non-Resident Ordinary) is required

Benefits of Portfolio Investment Scheme

  • You can buy, sell, repatriate the shares and bonds at a click and enjoy smooth transactions with great services of the banks.
  • Through your SBM NRE PIS Account, you can route the transactions under PIS on the repatriable basis for buying and selling transactions on recognized stock exchanges.
  • If you are an Indian resident turned NRI, you can still hold the securities on a non-repatriation basis, however, if your status shifts to resident Indian from NRI, you can’t continue to hold an NRE or NRO account and would have to inform the authorized branch to set up a new resident Demat account while closing the NRI Demat account.
  • Under repatriation, you can invest up to 5% and up to 10% for aggregate NRI investments of the total paid-up capital of a company, which are the limits to be followed. However, this cap can be raised to 24% if RBI allows.
Points to remember:

  • You can allocate only one designated bank for the PIS account for NRO and NRE savings account.
  • According to RBI, the NRIs should have separate bank accounts for PIS and cannot maintain multiple PIS accounts with different banks.
  • NRIs are not permitted to invest in companies engaged in businesses like real estate businesses related to agricultural or farmland, chit funds, and such. They are also not permitted to do day trading including no borrowing or short selling.
  • To designate an NRI Bank Account (NRE or NRO) as a PIS Account, the customer has to:
  1. Submit a PIS application form to the bank (either online within some clicks or offline by visiting the bank)
  2. Specify the repatriation or non-repatriation basis of the account, and
  3. Get the application approved by the bank.

SBM Private Wealth in association with India Infoline (IIFL) offers the opportunity to Non-Resident Indians (NRIs) to invest in their favorite Indian company stocks in the emerging market basket, despite being thousands of miles away from the country. To register for the NRE Portfolio Investment Scheme (PIS) Account or to know more, you can visit the nearest SBM branch or visit the website


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