PIS vs Non-PIS routing
PIS = Portfolio Investment Scheme, an RBI-mandated routing layer that NRIs must use to buy listed Indian shares on the secondary market (NSE / BSE). Every PIS trade gets reported to the RBI by your designated bank — that's the whole point of PIS, it's the regulator's audit trail. Non-PIS covers everything else NRIs invest in: IPOs, mutual funds, ETFs, corporate bonds, government securities. Most active NRI investors need both — PIS for stock-picking, Non-PIS for funds and IPOs. Only one PIS per NRI is allowed by RBI; you can have multiple Non-PIS demats.
The 30-second answer
Most active NRI investors need both:
| Use case | Route | Funded from | Repatriable? |
|---|---|---|---|
| Buying listed shares on NSE/BSE | PIS | NRE | Yes (full) |
| Buying listed shares with INR-source funds | PIS | NRO | Limited ($1M/yr cap) |
| Subscribing to IPOs | Non-PIS | NRE/NRO | NRE: yes · NRO: $1M/yr |
| Buying mutual funds | Non-PIS | NRE/NRO | NRE: yes · NRO: $1M/yr |
| Corporate bonds, NCDs | Non-PIS | NRE/NRO | NRE: yes · NRO: $1M/yr |
| F&O / derivatives | Non-PIS | NRO only | NRO: $1M/yr |
| SGB (Sovereign Gold Bonds) | Non-PIS | NRE/NRO | NRE: yes · NRO: $1M/yr |
What it is, when you must use it
PIS is mandatory if an NRI wants to buy listed Indian equity from the secondary market (NSE/BSE) using NRE funds (and wants the gains repatriable). Each NRI can hold ONE PIS account, designated at one bank.
- One bank, one PIS: If you have NRE accounts at HDFC + ICICI, you can only designate one for PIS. All listed-equity buy/sell must route through that bank.
- Each trade reported: Bank reports every PIS trade to RBI within 24 hours. There's an automatic 10% cap on NRI ownership of any single Indian company.
- Sell proceeds: Land back in your PIS NRE account (if NRE-funded) or PIS NRO account (if NRO-funded). Repatriation rules apply accordingly.
- What's excluded: Mutual funds, IPOs, corporate bonds, ETFs, SGBs — none of these go through PIS. Use Non-PIS for those.
What it is, when you use it
Non-PIS is the regular trading account most retail Indian investors use. NRIs can hold one too, in addition to their PIS account.
- For everything except secondary-market equity: IPOs, mutual funds, corporate bonds, ETFs, SGBs — all route through Non-PIS.
- No PIS hassle: No 10% cap reporting, no per-trade RBI filing. Faster trade execution.
- Funded from NRO or NRE: Either works. Repatriability depends on funding source.
- Bank choice flexible: No "one Non-PIS per NRI" rule. You can have Non-PIS accounts at multiple banks if you want.
Both PIS + Non-PIS
You'll need both if you want to:
- Buy listed Indian stocks (PIS required)
- Subscribe to IPOs (Non-PIS required — IPOs are NOT secondary market)
- Hold mutual funds + bonds (Non-PIS)
Most modern brokers (Zerodha, ICICI Direct, HDFC Sec) handle both PIS + Non-PIS under a unified login. PIS comes via your designated bank, Non-PIS comes from the broker side.
Get both. Designate PIS at the same bank as your primary NRE.
Designate PIS at the bank where your primary NRE account already lives — saves cross-bank transfers + reduces friction. ICICI Direct's 3-in-1 (NRE + demat + PIS in one login) is the cleanest. Zerodha pairs with IndusInd PIS. Get the Non-PIS account from the same broker for IPOs + MFs.
→ ICICI Direct · NRE + demat + PIS in one login
Open NRE at ICICI Bank, demat at ICICI Direct, designate PIS at ICICI. Single login, automatic routing for both PIS (equity) and Non-PIS (IPOs, MFs).
→ Zerodha + IndusInd PIS
Zerodha demat (₹0 brokerage on equity), pair with IndusInd PIS. Slight friction (cross-bank transfer for PIS) but ~₹15K/yr cheaper than ICICI Direct on a ₹50L portfolio.