What is PIS Full Form in Banking?

The PIS’s full form in Banking is Portfolio Investment Scheme. NRIs can invest in Indian company shares in the secondary market through a registered stockbroker on a recognized stock exchange under the Portfolio Investment Scheme (PIS), either repatriation or non-repatriation. NRIs can invest up to 5% of the paid-up capital/value of each series of debentures in listed Indian companies using the PIS route, within legal limitations and in compliance with RBI guidelines. NRI investors are responsible for both purchasing and selling shares.

Features of the portfolio investment scheme:

NRIs who purchase shares on the stock exchange under PIS cannot transfer them to a person in India or abroad without RBI approval. This includes private sales or gifts. NRIs must open an NRE PIS account to participate in the secondary market on a repatriation basis. To invest in the secondary market on a non-repatriation basis, funds must be transferred directly from an NRO Savings Bank account. The NRI cannot have numerous PIS accounts at various banks. To maintain the PIS account, NRIs must send original purchase and sale contract notes to the designated branch within 24/48 hours after the contract execution.

How to enroll in the PIS?

Banks allow NRI customers with KYC-compliant NRE Savings Bank accounts to open an NRE-PIS account. For new clients, multiple accounts can be opened simultaneously. The PIS account is linked to the NRE Savings Bank account held at any bank branch, allowing customers to perform transactions.