An NRI can operate either on NRE (Repatriable) or NRO (Non Repatriable) or on both NRE & NRO status. One should open an NRE/NRO –PIS A/c (Portfolio Investment Scheme A/c) with the same branch of the bank.

One should apply for an RBI approval to invest in Indian stock market through his designated bank branch.

NRI can have only one PIS A/c at a time with any bank in India.

All the primary market transactions are routed through a normal NRE/NRO – savings A/c.

NRI cannot do day trading & short selling.

All trades of NRIs are settled on bill to bill basis.

Only delivery based transactions are allowed.

NRI can trade in equity derivatives but on NRO basis only.

NRI cannot trade in Commodity & Currency derivatives.

Funds can be remitted from an FCNR or NRE A/c.

​Money can be transferred from NRE to NRO account, however, vice versa funds transfer is not allowed.

Off market transfers between NRI accounts are not allowed under PIS.

NRI can receive shares as gift from his close relative(relative” as defined under Section 6 of the Companies Act, 1956). A proper gift deed needs to be executed for this transfer. Also it has to be submitted to bank along with declaration of particulars of shares. Transfer of shares from NRI to resident Indian is not allowed.

Shares transfer from NRE to NRO demat account or NRO to NRE demat account is not allowed under PIS.