What is PIS and Non PIS account?

Feature

PIS

Non-PIS

Purpose

Enables NRIs to invest in listed Indian companies on the BSE and NSE

Allows NRIs to invest in equity shares, IPOs, mutual funds, and bonds.

Investment Type

Only equity investments in the secondary market (shares of listed Indian companies).

Equity shares, IPOs, mutual funds, and bonds.

Repatriation Basis

Investments can be made on a repatriation basis from both NRE and NRO bank accounts.

Investments are made on a non-repatriation basis.

Transaction Reporting

Transactions are reported to the RBI.

Transactions are not reported to the RBI.

Restrictions on Investments

NRIs cannot invest in IPOs, pre-IPOs, direct mutual funds, and derivatives. Only equity investments in the secondary market are allowed.

No restrictions on the type of investments; can invest in equity shares, IPOs, mutual funds, and bonds.

Repatriation of Earnings

Income or money earned can be freely repatriated abroad.

Follows the general repatriation rules of NRE/NRO accounts.

Account Requirements

Requires a separate PIS account with a designated bank branch authorized by the RBI.

Does not require a separate PIS account; investments can be made through a non-PIS NRO trading account

Applicability

Applies only to trading on Indian stock markets for the equity segment and for bonds of listed companies.

This applies to trading on the Indian stock markets for shares and investment mutual funds.

Flexibility

Restricted to trading in the equity segment on the BSE and NSE; no investment in other instruments such as IPOs, mutual funds, or derivatives.

More flexible; allows investment in a variety of instruments including equity shares, IPOs, mutual funds, and bonds.

Bank Role

The banks manage the PIS account and report all transactions to the RBI.

The banks do not report transactions to the RBI; investments are made via the general banking system.