Short answer

Money is settled differently after buying or selling securities in a PIS and Non-PIS account. The differences are as follows:

PIS account settlement

Buying stocks

iRage sends a buy contract note to the bank at the end of the day (T day).

The bank debits the amount from the PIS savings account and credits iRage on the next working day (T+1 day).

Selling stocks

iRage sends a sell contract note to the bank at the end of the day (T day).

The bank calculates the applicable TDS and credits the PIS savings account on the next working day (T+1 day).

At the end of the day (T+1 day), the bank sends iRage a report with the PIS balance.

iRage updates the margins on the next working day (T+2 day).

Stocks are sold from the demat account on Monday (T-Day). At the end of the day, iRage sends a sell contract note to the bank for reporting and settlement.

The proceeds from the sale are credited to the PIS bank account on Tuesday (T+1).

On Tuesday (T+1), the bank sends a report to iRage with the PIS balance.

On Wednesday (T+2), the PIS balance is updated as margins in the Arrow account before the market opens.

Futures and Option (F&O)

PIS account holders cannot trade in Futures and Options (F&O).

Non-PIS account settlement

Buying and selling stocks

Buying and selling stocks in an NRO Non-PIS account is similar to a resident individual account.

However, when stocks are sold, the funds are settled in the trading account, but only 75% of the proceeds will be made available for trading on the same day (T-day). The remaining funds will be available for trading the next day (T+1) after iRage blocks provisional TDS on capital gains. The provisional TDS is released at the end of the day on T+1, and the entire sale proceeds become available. If there is a profit, the actual TDS is deducted after releasing the blocked TDS amount. TDS will not be deducted if there is a loss when the shares are sold. To learn more about TDS for NRI non-PIS accounts, see How does iRage deduct TDS for NRI NON-PIS accounts? Example scenario

On Monday (T Day), stocks worth ₹20,000 were sold from the demat account.

75% of the sale proceeds, which is ₹15,000, is released on the same day.

iRage blocks ₹4,784 as provisional TDS at the rate of 23.92% (₹20,000 × 23.92%) at the end of the day.

By the end of Tuesday (T+1), the provisional TDS of ₹4,784 is reversed, and the entire ₹20,000 sale proceeds are available for withdrawal. However, they can only be used for trading from Wednesday (T+2) onwards.

Futures and Options (F&O)

NRO account holders can trade in equity Futures and Option (F&O) via NRO Non-PIS account. A Custodial Participant (CP) code is required to trade in the equity F&O. iRage has tied up with Orbis to help NRI clients receive a CP code. Once the NRI has the CP code, all funds for trading F&O will be with the custodian, similar to how all the funds for trading stocks are with the bank.

NRO account holders can either invest in equity delivery or trade in F&O. They cannot do both at the same time.

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Broker details

iRage Broking Services LLP (SEBI registration INZ000011262), product name Arrow. Registered office: Gift City, Gandhinagar.