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

The fund statement entries for an NRI PIS Zerodha account are explained below:

Buy transaction

When a stock is purchased, Zerodha sends a buy contract note to the bank at the end of the day and posts an entry on the funds statement. The bank debits the PIS account to that extent and credits Zerodha one working day after the transaction day (T+1).

Example scenario

1. The entry on 26th December 2024 shows a debit of ₹46,663, indicating a buy transaction. The corresponding entry from the bank was posted on 27th December 2024, 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.

Sell transaction

When a stock is sold from the demat account, Zerodha sends a sell contract note to the bank at the end of the day to calculate TDS. The proceeds from the sale are credited to the PIS bank account the next working day after the transaction day (T+1).

Example scenario

1. The entry on 11th December 2024 shows a credit of ₹4,23,824, indicating a buy transaction. The corresponding entry from the bank was posted on 12th December 2024, confirming 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.

Did you know?

• When shares are sold, the sale proceeds will be credited to the account on T+1, provided there are no discrepancies in the holdings. If there are simple corporate actions like a bonus issue or stock split, the settlement will be T+2. However, complex corporate actions such as mergers, amalgamations, or demergers can take additional time as the company must issue the cost of the new shares.
• Some banks do not consider IPOs, ETFs, and bonds part of the PIS regulations and, hence, settle in savings accounts.