How to open a PINS account

Jul 15, 2013, 08.00AM IST

(PINS is mandatory for NRIs…)

The Portfolio Investment NRI Scheme (PINS) is mandatory for Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs), who want to deal in shares and convertible debentures of Indian firms on a stock exchange in the country. All buy and sell transactions in listed securities of NRIs are routed through their PINS accounts in a designated bank, which maintains and reports the NRI investments to the RBI.

PINS account

A PINS account in the bank is identical to the NRE account. Even if the NRI has an NRE account, he must open a separate PINS account for trading in shares. An NRI/PIO can have only one PINS account at a given point of time.

Bank branch

A PINS account can be opened only in designated branches of banks (authorised dealers) as authorised by the RBI under the Portfolio Investment Scheme (PIS). The addresses of designated branches are usually available on banks' websites.

Application form

The application for PIS permission can be made through the bank by filling an application form. The details of all shares purchased through the primary market need to be enclosed. A PINS demat account opening form must also be enclosed.

Documents

A copy of the current passport, valid work permit or employment visa, PIO card (if applicable) and address proof need to be enclosed along with the application. The form with required documents needs to be submitted at the designated branch.

Points to note

* The seafarers employed by foreign shipping companies can open a PINS account by submitting the required documents, such as the Continuous Discharge Certificate.

* The PINS account can be debited only for transfer of funds to NRO/NRE account, remittances outside India or for payments to brokers for shares purchased.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre and Arti Bhargava.)