Frequently Asked Questions

Portfolio Investment Scheme (PIS) allows Non-Resident Indians (NRIs) to invest in equity shares (sale or purchase) of an Indian company in the secondary market on repatriation basis through a registered stock broker on a recognized stock exchange.

Repatriation of sale proceeds is allowed if the original purchase was made on a repatriation basis and the source of investment was from an NRE bank account or through remittance from abroad.

No, an NRI can have only one designated bank for PIS.

NRIs can transfer their NRE PIS account from one Authorised dealer to another by closing the existing PIS account with the existing Authorised dealer. NRI can open a new PIS account with the new Authorised dealer after obtaining a No Objection Certificate (NOC) and Certified PIS Holding statement from the existing dealer.

The total holding by any individual NRI should not exceed five percent of the total paid-up equity capital on a fully diluted basis or should not exceed five percent of the paid-up value of each series of debentures or preference shares or warrants issued by an Indian company and the total holdings of all NRIs put together should not exceed ten percent of total paid-up equity capital on a fully diluted basis or should not exceed ten percent of the paid-up value of each series of debentures or preference shares or warrants.

As per RBI guidelines, NRIs need to open an NRE bank account to invest in PIS. All other transactions, such as purchase of IPO shares, mutual funds, bill payments, Loan Equated monthly instalments (EMIs), etc. should not be routed through the NRE Bank account which is linked to PIS.

NRE PIS accounts can be opened in joint names; however, the PIS approved for the account are applicable only to the primary holder. If joint holder (NRI) wants to trade in the secondary market, they need to open a separate NRE PIS account.

• Inward remittances in foreign exchange through normal banking channels.
• Transfer from applicant's other NRE or FCNR accounts maintained with an Authorised Dealer (AD Bank).
• Dividends or income generated from investments made through the PIS.
• Transfer of net sale proceeds (post deducting applicable taxes) for shares purchased on a repatriation basis under the Portfolio Investment Scheme and subsequently sold through a registered broker on the stock exchange.

• Amounts paid on the purchase of Equity on a repatriation basis on stock exchanges through a registered broker under PIS
• Any charges pertaining to the sale/purchase of Equity in accordance with the regulations
• Remittances outside India or transfer to NRE/Foreign Currency Non-Resident (FCNR) Accounts of the NRI/Overseas Citizen of India (OCI) or any other person eligible to maintain such accounts.

NRIs should ensure that secondary market equity shares are purchased within the allowed limits and refer to the National Securities Depository Limited (NSDL) website to check the Watch and Caution list.

Information available on National Securities Depository Limited (NSDL) website:

• The Watch List typically includes companies that have reached their investment ceiling, meaning no fresh purchases are allowed for NRIs.
• The Caution List typically includes companies where NRI holdings are near or close to the prescribed limit.

NRIs are not allowed to purchase and sell shares of the same company within the same settlement cycle under an NRE PIS Account. NRIs must take delivery of purchased shares before selling them in the secondary market.

NRIs are not allowed to do Intraday trading under NRE PIS account, as they need to take delivery of shares before selling.

As per RBI guidelines, NRIs or their share brokers are required to report the secondary market transactions to the AD Bank for RBI reporting. For further details please get in touch with your share broker.

An NRI having PIS with ICICI Bank can send the contract notes (summary of trades executed) to the following address or email the contract note to pins@icicibank.com from their registered email id:

ICICI Bank Limited,
Portfolio Investment Services Cell
215, Free Press House
Nariman Point Branch,
Mumbai, Maharashtra
India - 400 021

The AD Bank informs the customer when the prescribed limit has exceeded the eligible holding. If an NRI exceeds the prescribed holding limit, they must sell or offload the excess shares. NRIs should monitor the investment limits of their share market purchases to avoid corrective actions later.