InvestmentFinancial Glossary
PIS Account (Portfolio Investment Scheme)
Definition
A designated bank account that NRIs must open with an authorized dealer bank to trade in shares and debentures on Indian stock exchanges. PIS is governed by RBI and ensures compliance with FEMA regulations on NRI equity investments. The PIS permission letter specifies the bank account from which trading debits and credits flow.
Why It Matters
Without a PIS account, NRIs cannot directly buy or sell shares on the NSE or BSE. The process requires opening an NRE or NRO account with a PIS-designated bank, obtaining a PIS permission letter from RBI (through the bank), and linking it to a trading and demat account. The entire setup can take 3-6 weeks, so plan ahead before you want to start trading.