What is the difference between a PIS Account and a Non-PIS Account for NRI trading with Firstock?

PIS (Portfolio Investment Scheme) and Non-PIS accounts are two different ways for NRIs to invest in Indian stock markets.

Here’s a comparison to help you choose the right option:

PIS Account:

• Requires an NRE or NRO bank account with a partner bank and a PIS permission letter from RBI
• Funds are routed through the PIS account, which can delay transfers to your trading account by up to 1 working day
• The bank deducts and pays TDS on profits (20% for short-term, 12.5% for long-term gains above ₹1.25 lakh)
• Brokerage is 0.5% or ₹200 per order, whichever is lower
• Additional bank charges: up to ₹300 per contract note (per trading day) and up to ₹1,500/year AMC
• Subject to RBI restrictions on NRI ownership in certain companies
• BTST (Buy Today Sell Tomorrow) trades are not allowed

Non-PIS Account (Recommended):

• Only an NRO account is required, and it can be with any bank
• No RBI permission letter needed
• Funds are transferred instantly from your NRO account to your trading account via net banking
• Firstock deducts and manages TDS, with no extra charges
• Lower brokerage: 0.5% or ₹20 per order, whichever is lower
• No charges for contract notes or AMC
• No RBI restrictions on NRI ownership in companies
• BTST trades are allowed

Account Type Comparison

Feature	NRO – Non-PIS Account	NRE – PIS Account
RBI Approval	Not Required	Required
Account Type	NRO (Non-PIS)	NRE (PIS-enabled)
Equity Delivery	Yes	Yes
Futures & Options (F&O)	Yes	Not allowed
Investment Limits	None	As per RBI regulations
Tax Reporting	Firstock handles it	Routed through the bank

If you need further guidance or wish to initiate the process, visit https://nri.thefirstock.com or contact the Firstock support team.

Contact no: 080 4670 2020 Email : [email protected]