Moving NRE PIS Account

1

Dear All,

Can anyone guide me here on their experience on moving their NRE-PIS account to another bank?

I am looking to move from Bank A to Bank B, both are large banks offering 3 in 1 PIS accounts.

Bank B is advising me to open an NRE-PIS account with them and then close the Bank A NRE-PIS account after transferring all the shares. However, I am not comfortable signing on the A/c opening form that I don’t hold another PIS Account!

Bank A on the other hand is recommeding the same. That I open another PIS account, transfer exsisting holding with a DIS book and then close the Bank A account.

I am a little confused here. I don’t wish to sell all my holdings as it will cost me 2-3% to sell and buy back, basically a waste of money + STCG tax.

Is it OK to open another PIS account and then proceed with closing the old one.

As far as I have read, usually Bank B will require an NOC from Bank A.

If anyone has been through this, kindly advice.

2

Dear Sushil

You cannot have PIS account with 2 banks at the same time. You can get a PIS NOC only on closing the PIS account. PIS account is opened with RBI permission.

You can have multiple demat and trading account. You can open the 3 in 1 account with the bank you want after obtaining NOC. After that you can transfer all demat holdings from previous account to new demat account. The downside is that you will not be able to trade during the PIS closing in one bank and PIS opening in another bank window.

1 Like
3

Thanks Rehan. Another standalone Broker (who appeared to be better informed) suggested this.

I will stick to what you suggested and discuss the same with my Bank(s). Better to follow the procedure.

4

@mohdrehan1

Another point here. Will I receive any future dividends/bonus shares etc. in the new demat automatically?

Thanks

5

Dividend will be credited to your NRE / NRO account ( to which your demat account is linked) and not PIS account. Only pay in and pay out is routed through PIS account. If you close your PIS account with one bank , you will still have NRE account opened which you can close after transfer of your demat holding to the new demat account. All demat accounts will always have one bank linked unless you close the account without informing demat participant.

bonus will be credited to your demat account where ever your holdings are as on the record date.

6

Thanks a lot Rehan. You seem to be an expert in this!

7

Hi sushil,
can you please guide me how you have done this and your experience. I have to do same thing. I have PMS -NRO Demat account but i don’t have PMS-NRE demat account. I want to open NRE Demat account with zerodha or someone who is more reliable.
Thanks for your help
Regards,
Milind

8

You need a offline PIS account to deal with a non bank broker, slightly admin heavy process. I had initially opened NRE PIS account with HDFC bank but later moved to Motilal Oswal to reduce brokerage.
Broker would explain you the process.

9

I have recently got my NRE-PIS opened with Zerodha, with Indusind personnel coordinating the process. Indusind will be able to help as long as they have a tie up the specific broker. It will take around 2-4 weeks. I chose to go with IndusInd since they do not charge transaction charges (as of now, they may very well start charging in future).

10

Thanks, did you open form USA? if yes, it would be be great help if you can provide contact info of indusind personnel.
Regards,
Milind

11

From Malaysia. My suggestion would be to request for a call back from Indusind NRI section on their website. I am not sure about how to send direct message, posting contact details here may violate the policy

1 Like
12

Hi sir

How is your experience with Indus ind bank so far…/ did they charged any hidden amounts

Please advise

Thanks

13

I do PIS with Indusind bank, broker with sharekhan, working seemsless without much issue, indusind charge me rs59 per day transaction and sharekhan will charge brockage.

14

i have Zerodha and IDFC NRE PIS Setup and the only complain i have is 1 day delay before funds show up in my Zerodha a/c.

Anyone overcame this issue?

15

My experience is good so far, no glitches. No hidden charges as of now.

16

The update typically happens in the morning, this is the reason for the delay. It is as per the design, the information is provided on Zerodha

17

How much idfc charges per buy or sell contract… please advise

18

100rs per contract (transactions) - Buy and sell are considered 2 seperate transactions

19

Sir t + 2 days indus ind will take to credit the amount right …or more days they will take to credit the sale proceeds

20

Yes, sell order will take T+2 days for credit into PIS