Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
What PIS was for
The Portfolio Investment Scheme is an RBI framework that lets NRIs buy and sell listed shares on a stock exchange through a designated bank account, with the bank tracking the holdings and reporting them. It was historically the standard route for an NRI buying Indian equities.
What has changed
The rules have been simplified. Investing on a non-repatriable basis (through an NRO account) generally does not need PIS, while repatriable investment through an NRE account still typically uses the PIS-style route. Mutual funds never required PIS. Bank and RBI procedures vary — confirm the current requirement with your broker/bank.
A worked example
Example: an NRI wanting repatriable equity exposure opens an NRE-linked account under the PIS route; one investing spare Indian funds on a non-repatriable basis can often use a simpler NRO demat without PIS. Either way, the tax on gains is the same. Choosing repatriable vs non-repatriable upfront avoids reshuffling later. Our NRI tax service can advise on the setup.