For an NRI to invest and trade in the stock market in India on a repatriation basis, it needs PIS permission letter from RBI. The PIS letter enables NRIs to buy and sell shares on the stock exchange in India. All these transactions are routed through the NRE bank account. Also, the bank in which you hold the NRI account helps you get this permission.
On the other hand, if you plan to invest on a non-repatriation basis, you don’t need an RBI PIS permission. In such a case, you will just need an NRO account linked to a demat and trading account.
