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  • Investments

    Portfolio Investment Scheme Account

    Easy investments for NRIs in India

Invest in India

NRIs can invest in shares of Indian companies or in the secondary market

Buy, Sell, Repatriate

Shares can be invested in under repatriation or non-repatriation basis.
They can also be bought and sold

Smooth Transactions

The account assists NRIs in getting transactions done in a smooth, seamless and hassle-free manner

Ease of Operation

Authorise a relative of friend to operate the account in your absence

  • Features and Benefits

  • Eligibility and Documentation

  • Fees and Charges

  • Download Forms

  • 1, 2, 3, 4, 5, 6,

Features and Benefits

Benefit from investing in India’s secondary market

NRIs can now invest their money in the shares of Indian companies or in the ever-growing secondary market of India

  • Portfolio Investment Scheme (PIS) Account allows NRIs to invest in shares of Indian companies under repatriation or non-repatriation basis.
  • They can now buy and sell shares or convertible debenture through a registered stock broker on a recognised stock exchange in India

The account will assist NRIs in getting their transaction done in a smooth, seamless and hassle-free manner. Any other modes of acquiring shares are not covered in this scheme such as shares purchased through IPOs, as residents, bonus shares etc.

Low cost of transaction
Seamless reporting to RBI and complying with all statutory regulations on your behalf

Calculation of capital gains tax and issuance of tax deduction certificate

Mandate of Power of Attorney facility is available so that in your absence from the country you can authorise your relative or friend to operate conduct banking transactions on your behalf

24x7 account access through secure internet banking facility and free iConnect

  • In order to provide distinctive customer solution and improve customer experience, we have now started providing Set off facility within a contract note from April 1, 2014.
  • The set off will be provided only for equity transactions within a contract note.
  • The Bank will be able to set off losses against capital gains on equity shares only.
  • The benefit of set off of losses is available per contract note basis (i-e: losses made in one contract note can be set off against the gains made within that contract note only).
  • The bank will report purchase and sale contract notes on FIFO basis recorded with the bank and compute capital gain tax accordingly.

Set Off Facility Case Studies

Eligibility and Documentation

Enhanced Set-Off Facility at Portfolio level

In order to cater to the specific needs of the NRI customers and provide value added benefits, we have now started offering Enhanced Set-off facility to all the NRIPIS customers at portfolio level w.e.f 1st April 2016. The enhanced set off facility will be applicable only for short term equity transactions and will be available for the entire financial year.

Salient features

  • Losses to be carried forward till last day of the current Financial Year.
  • Losses from NRE A/c can be adjusted against profits from NRO A/c & vice –versa.
  • Set-off of losses against future profits.
  • Set-off of short term losses at portfolio level.
  • Detailed Capital Gains statement at Customer ID level.
    • Single statement at a Customer ID level instead of account level.
    • Detailed computation of set-off.
    • Details of carried forward losses in each account.
    • Single statement at a Customer ID level instead of account level.

Fees and Charges

By foreign inward remittance by way of TT, DD, cheque, Travellers cheque, foreign currency, etc., or transfer from existing NRE accounts or FCNR accounts.

  • Non Resident External (NRE)
    • Inward remittances in foreign exchange through normal banking channels;
    • Transfer from applicant’s other NRE accounts or FCNR accounts maintained with AD bank in India;
    • Dividend or income earned on investments under PIS.
    • Net sale proceeds (after payment of applicable taxes) of shares and convertible debentures which were acquired on repatriation basis under PIS and sold on stock exchange through registered broker.
  • Non Resident Ordinary (NRO)
    • Inward remittances in foreign exchange through normal banking channels;
    • Transfer from applicant’s other NRE accounts or FCNR accounts or NRO accounts maintained with AD bank in India;
    • Dividend or income earned on investments under PIS.
    • Net sale proceeds (after payment of applicable taxes) of shares and convertible debentures which were acquired on repatriation (at the NRI’s option) and non-repatriation basis under PIS and sold on stock exchange through registered broker.
  • Non Resident External (NRE)
    • Any charges on account of sale/ purchase of shares or convertible debentures under PIS.
    • Outward remittances of dividend or income earned;
    • Amounts paid on account of purchase of shares and convertible debentures on repatriation basis on stock exchanges through registered broker under PIS.
  • Non Resident Ordinary (NRO)
    • Any charges on account of sale/ purchase of shares or convertible debentures under PIS.
    • Outward remittances of dividend or income earned;;
    • Amounts paid on account of purchase of shares and convertible debentures on non- repatriation basis on stock exchanges through registered broker under PIS.

Download Forms

The following cannot open a Portfolio Investment Scheme Account

  • Residents who travel overseas for health and medical check-up
  • Residents who travel overseas for any tour abroad for their short visit whether on excursion or business promotion
  • Residents residing in Bangladesh or Pakistan, without prior approval of RBI
  • Residents residing in Nepal and Bhutan
  • Seafarers employed by Indian shipping companies

Keep your documents ready

In order to open an account customer will have to submit the following documents

  • Copy of valid passport (pages with your name, address, date of birth, date and place of issue, expiry date, photograph, address, signature and observation page, if any)
  • Proof of NRI status, by way of valid Employment/Residence Visa copy or Work/Residence Permit
  • Copy of Indian PAN card
  • Proof of Overseas and Indian Address (as per Customer Identification Policy)
  • Recent passport size colour photograph
  • Copy of valid passport (pages with your name, address, date of birth, date and place of issue, expiry date, photograph, signature and observation page, if any)
  • Copy of Valid PIO/OCI card or any other proof of PIO status as per Customer Identification Policy
  • Proof of Overseas and Indian Address (as per Customer Identification Policy)
  • Duly signed and filled-in PIO declaration
  • Copy of Indian PAN Card
  • Recent passport size colour photograph

The address proof must match with the communication address selected by you on this Relationship Form.

  • Passport
  • Bank statement (not more than 3 months old from the date of application) of Overseas or India based bank.
  • Valid Permanent Overseas Driving License
  • Credit Card statement (not more than 3 months old)
  • Company ID Card indicating the address
  • Certificate from Indian Diplomatic Mission stating the contact address
  • Government ID card (SSN / Green Card / PIO card / OCI card)
  • Utility bill (electricity/ gas/phone/ water – not more than 3 months old from the date of application)
  • Appointment letter of overseas Employer Corporate.
  • Letter from foreign University stating the address(for on-campus lodging)
  • Registered Purchase / Sale Deed or agreement
  • Foreign Government issued Identity Card
  • Lease / Rent / Leave and License agreement indicating the address of the customer duly registered with Government or similar registration authority.
  • Valid employment contract letter.
  • Valid employment offer letter.
  • Employer’s certificate for proof of overseas address.
  • Letter from the government postal services confirming the address of the applicant.
  • Permanent Resident Permit / Work Permit mentioning the overseas address. Following are some of the residence permits that have the address Kuwait-Bataaka Madaniya (Civil ID), Saudi Arabia-Iqaama (Residential permit), Oman-Residence Card, UAE-Labour Card , Bahrain-CPR (Central Population registry) Card and Qatar-Residence Card, Singapore/Malaysia Permanent Resident Card
  • Passport (valid as on date)
  • Permanent Driving License, which is valid with the photograph affixed thereon
  • Voter's Identity Card (Election Card)
  • Job Card issued by NREGA duly signed by an officer of the State Government
  • Letter/Card issued by the Unique Identification Authority of India (UIDAI) containing details of name, photograph, address and Aadhaar number. Accordingly, either the physical Aadhaar card/letter issued by UIDAI received through post or the Aadhaar number validated through the e-KYC process is acceptable as an officially valid KYC document for onboarding the customer and for re-KYC purpose

Download Forms

Fees and Charges (w.e.f. 01/05/2014)
PIS Issuance Charges Rs. 1,000/- *
PIS Account maintenance charge Rs. 1,500/- #
Reporting charge Rs 150/- will be levied per trade date - separate for purchase and sale irrespective of transacted quantity or value^

*Issuance charge waived off for Priority Banking, Wealth and Privee customers.

^Reporting charge of Rs 100/- will be levied per trade date - separate for purchase and sale irrespective of transacted quantity or value for wealth customers. Reporting charge of Rs 75/- will be levied per trade date - separate for purchase and sale irrespective of transacted quantity or value for Privee customers.

For further details, download the Schedule of charges for NRI accounts

Download Forms

The Portfolio Investment Scheme (PIS) is a scheme of Reserve Bank of India defined in Schedule 3 of the Foreign Exchange Management Act 2000. As per the scheme, NRIs can purchase and sell shares and convertible debentures of Indian Companies on a recognised stock exchange by routing such purchase/sale transactions through their account with a Designated Bank Branch (with effect from 29/11/2001 RBI has restricted OCBs from making fresh purchases. They can however continue their existing holdings or sell off the same).

The PIS account cannot be a joint account. As per recent RBI guidelines, NRIs should have a separate bank account exclusively for PIS purposes. Transactions relating to their personal banking as well as on account of transactions relating to shares acquired other than under PIS including IPOs should be routed in a separate bank account not linked to their PIS Account/s.

No. NRIs cannot sell without taking delivery of the shares/convertible debentures purchased. Short selling is not permitted under PIS.

Yes. Investment can be made on repatriation as well as non-repatriation basis. However, the investor will have to open NRE account as well as NRO account under PIS with the same Designated Bank.

NRIs can assign only one Designated Bank for the purpose of routing the transactions under PIS for NRE and NRO. NRIs cannot maintain NRE and NRO accounts under PIS with different authorised dealers.

NRIs will have to off load such portion of the holding, which is in excess of the prescribed limit.

Yes. NRIs can purchase upto a maximum of five percent of the paid up capital of a company and maximum of five percent of paid up value of each series of debentures. For the purpose of this ceiling investment in repatriable and non-repatriable will be clubbed. In addition to the above, NRIs collectively can hold upto a maximum of 10% of such holding or any higher percentage so permitted in respect of any particular company. Shares/debentures acquired through primary market are excluded for the purpose of above limits.

Yes, as an NRI you can receive shares in inheritance. RBI permission is not required to be obtained and the shares will be held on non-repatriable basis.

The shares purchased through primary/secondary markets as a resident will be held on non-repatriation basis. Once the customer becomes an NRI, these shares can be credited to an NRO DEMAT Account. These shares can be sold in the secondary market without PIS permission. The sale proceeds can be credited to NRO SB Account after payment of capital gain taxes

No, as an NRI you can purchase shares in the primary market on repatriable/non repatriable basis and application money can be paid through regular NRE SB/NRO SB Account or through inward remittance.

The Reserve Bank of India monitors the investment position of NRIs/FIIs in listed Indian companies, reported by designated banks, on a daily basis. When the total holdings of NRIs/FIIs under the Scheme reaches the limit of 2 percent below the sectoral cap, Reserve Bank will issue a notice (caution list) to all designated branches of designated banks cautioning that any further purchases of shares of the particular Indian company will require prior approval of the Reserve Bank.
Once the shareholding by NRIs/FIIs reaches the overall ceiling / sectoral cap /statutory limit, the Reserve Bank places the company in the Ban List. Once a company is placed in the Ban List, no NRI can purchase the shares of the company under the Portfolio Investment Scheme. List of caution/banned RBI script is available at http://www.rbi.org.in/scripts/BS_FiiUSer.aspx

No. A new Section 112A is proposed to tax LTCG on gain on transfer of listed equity shares @ 10%, for gains in excess of Rs. 1 lakh. This provision is applicable from April 1, 2018.

The bank is required to deduct tax from the capital gains on sale of shares at specified rates of 15% (plus Health and Education Cess @ 4%) on short-term capital gains.

Shares purchased under PIS on stock exchange shall be sold on stock exchange only. Such Shares cannot be transferred by way of sale under private arrangement or by way of gift (except by NRIs to their relatives as defined in Section 6 of Companies Act, 1956 or to a charitable trust duly registered under the laws in India) to a person resident in India or outside India without prior approval of the Reserve Bank of India.

Yes, NRIs are allowed to invest in futures and options segment of the exchange out of Rupee funds held in India on non repatriation basis, subject to the limits prescribed by SEBI.

FEMA provisions allow Indian companies to issue Rights / Bonus shares to existing non-resident shareholders, subject to adherence to sectoral cap as may be applicable.

As per section 6(5) of FEMA, NRI can continue to hold the securities which he/she had purchased as a resident Indian, even after he/she has become a non resident Indian, on a non-repatriable basis.

Yes. It is the responsibility of the NRI to inform the change of status to the designated authorised dealer branch, through which the investor had made the investments in Portfolio Investment Scheme and the DP with whom he/she has opened the demat account. Subsequently, a new demat account in the resident status will have to be opened, securities should be transferred from the NRI demat account to resident account and then close the NRI demat account.

Enhanced set-off facility is a feature by which current losses on PIS transactions can be nullified against future profits, thereby enabling you to save Capital Gains tax. The facility is offered at portfolio level during the financial year.


Salient features

  • Set-off of losses will be permitted against future profits only & not against earlier profits
  • Losses can be carried forward till last day of the financial year or till it is completely set-off, whichever is earlier
  • Profits cannot be carried forward and Capital Gain tax will be calculated on a net profit (after adjusting previous losses, if any).

All amounts in INR

  Existing Process
Trade Day Gain Type Net Gain TDS Amount
Day 1 Profit 10,000.00 1,545.00
Day 2 Loss -5,000.00 0.00
Day 3 Profit 8,000.00 1,236.00
Day 4 Loss -12,000.00 0.00
Day 5 Profit 13,000.00 2,008.50
Total Tax (A) 4,789.50

  Revised Process
Trade Day Gain Type Net Gain Carry Forward Losses TDS Amount
Day 1 Profit 10,000.00 0.00 1,545.00
Day 2 Loss 0.00 -5,000.00 0.00
Day 3 Profit 3000 (8,000-5,000) 0.00 463.50
Day 4 Loss 0.00 -12,000.00 0.00
Day 5 Profit 1000 (13,000-12,000) 0.00 154.50
Total Tax (B) 2,163.00

TDS calculated at 15.45%


Benefit to customer: INR 2,626.50 (A-B)

Yes, Enhanced set-off facility is provided at portfolio level during the financial year & therefore losses on NRO PIS transaction can be set-off against profits in NRE PIS transactions and vice-versa. However, please note that losses can be set-off only against future profits and not on earlier profits.

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