What happens after a trade is punched in a NRE account
When You Purchase Shares
Navia's Role
- The bank shares your PIS Bank balance with us on a daily basis end of the day.
- This balance is added to your ledger balance and uploaded to the Trading Terminal. This becomes your available balance at the start of the next Trading day.
- Funds transferred to PIS Account during the day will not reflect in your Trading account. It becomes available only from the next Trading day.
- You purchase shares using product code CNC, based on the funds updated.
- At the end of the day, the contract note for the purchase trade is generated and sent to you and to your banker.
- The banker transfers the exact purchase value (as per the contract note) from your PIS Bank account to your account with Navia — generally within 1 working day of the banker receiving the contract note. Once received, we credit your trading ledger.
Banker's Role
- On receipt of the contract note, the bank transfers the exact amount mentioned in it to us.
- The bank records the purchase details in their system to track the purchase rate for tax calculation at the time of sale.
- The bank reports the transaction to the RBI.
When You Sell Shares
Broker's Role (Navia)
- As an NRI, you can sell shares only if they are available in your Demat account — holdings there are automatically reflected in the trading system.
- To place a sell order, select the product type as CNC.
- At the end of the day, a contract note for the sale is generated and sent to your designated banker along with the funds.
- Sale proceeds are transferred to your bank account by debiting your trading ledger, based on the value in the contract note — typically within 1 working day of the trade.
Banker's Role
- On receipt of the contract note and funds, the bank calculates the profit or loss, deducts the applicable STCG or LTCG tax, and credits the net balance to your bank account — generally within 1 working day.
- The bank reports the transaction to the RBI, as required under FEMA regulations.
Important — Purchase Details Required for Fund Release (PIS):
The bank releases sale proceeds based on the original purchase details (price, date, quantity) under PIS. If these are not available with the banker, the funds will be withheld until furnished.
The bank releases sale proceeds based on the original purchase details (price, date, quantity) under PIS. If these are not available with the banker, the funds will be withheld until furnished.
Purchase Details You Must Submit to Your Banker (if requested)
- Original purchase date
- Purchase price per share
- Quantity purchased
- Contract note or broker statement confirming the purchase
Without these details, the bank cannot determine the correct tax liability and will not release the funds.
What if you cannot provide the purchase details?
You may map your NRO (Non-Resident Ordinary) bank account to receive the sale proceeds instead. Navia will transfer the funds to the NRO account after deducting TDS at the applicable rate on the full sale value, since the cost of acquisition cannot be established.
You may map your NRO (Non-Resident Ordinary) bank account to receive the sale proceeds instead. Navia will transfer the funds to the NRO account after deducting TDS at the applicable rate on the full sale value, since the cost of acquisition cannot be established.
Summary of Fund Release Conditions
| Scenario | Action Required | Fund Release Route |
|---|---|---|
| Purchase details available with banker | None — bank processes normally | NRE account (after tax deduction) |
| Purchase details NOT available | Client submits purchase proof to banker | NRE account (after tax deduction on confirmed gain) |
| Purchase details unavailable and cannot be provided | Map NRO account | NRO account (TDS deducted on full/gross value) |
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