The full form of PIS is Portfolio Investment Scheme.
The Portfolio Investment Scheme (PIS) is a mechanism through which Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) can invest in the Indian stock market. It allows them to purchase shares and convertible debentures of Indian companies through designated branches of banks authorized by the Reserve Bank of India (RBI).
Here’s a breakdown of the PIS:
- Purpose: Facilitates investments in the Indian stock market by NRIs and PIOs.
- Eligibility: NRIs and PIOs are eligible to invest under the PIS route.
- Investment Instruments: Shares and convertible debentures of Indian companies.
- Regulatory Body: The Reserve Bank of India (RBI) regulates the PIS.
- Authorized Banks: Investments are made through designated branches of authorized banks.
- Investment Limits: There are limits on the percentage of a company's paid-up capital that can be held by NRIs/PIOs under the PIS. These limits are subject to change and specified by the RBI.
- Taxation: Investments made under the PIS are subject to Indian tax laws.
- Repatriation: Profits and dividends earned under the PIS are generally repatriable, subject to applicable regulations.
