How to understand the funds statement for an NRI Zerodha account?

Based on the contract note Zerodha reported to the bank, NRI trades are settled on a bill-to-bill basis. When a trade is executed, an entry is posted in the Console ledger on the same day. The bank entry will be posted as per the settlement cycle. To learn more, see What is the trading process for NRI accounts?

The fund statement entries are explained below:

Buy transaction

1. The ledger entry on 29th Oct 2020 shows a debit of ₹40,434, indicating a buy transaction. The corresponding entry from the bank was posted on 31st  Oct 2020, confirming the receipt of the funds for the buy transaction.
2. This can be viewed in the PIS account statement as a debit of the same amount as per the settlement cycle.

Sell transaction

1. The trade settlement entry on 3rd May 2020 shows a credit of ₹48,478.82, indicating a sell trade. The corresponding entry from the bank posted on the ledger confirms the debit of the funds at the broker’s end for the trade.
2. This can be viewed in the PIS account statement as a credit of the same amount per the settlement cycle.

Did you know? Some banks do not consider IPOs, ETFs and bonds as part of the PIS regulations and hence make settlements in the savings accounts.