RBI raises investment limits for NRIs, OCIs; Extends equity route to overseas individuals

Reserve Bank of India (RBI) Governor Sanjay Malhotra, on Friday, announced that the investment limits for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) in equity instruments traded on stock exchanges without Securities and Exchange Board of India (SEBI) registration will be increased.

The RBI has also decided to extend the same facility to all individual Persons Resident Outside India (PROIs), bringing them on par with NRIs and OCIs for such investments.

The move follows the Union Budget FY2026-27 announcement. To operationalise the proposal, the Department of Economic Affairs is notifying the Foreign Exchange Management (Non-Debt Instruments) (Third Amendment) Rules, 2026. The notification will allow individual Persons Resident Outside India (PROIs) to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme (PIS), a facility that was hitherto available only to NRIs and OCIs.

The move broadens access to Indian equity markets for overseas investors and is expected to facilitate greater participation by individuals residing outside India.

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The announcement forms part of the RBI's measures aimed at enhancing ease of investment and strengthening capital market participation. Detailed guidelines on the revised investment limits and implementation framework are expected to be issued separately by the central bank.

Under the current framework, an individual NRI or OCI can invest up to 5% of the paid-up equity capital of a listed Indian company through the Portfolio Investment Scheme (PIS), while the aggregate investment by all such investors is capped at 10%. The RBI has now proposed increasing the individual limit to 10% and the aggregate limit to 24%. The facility will also be extended to all individual Persons Resident Outside India (PROIs), expanding the pool of overseas investors eligible to invest in Indian equities.

Remittances into India remain among the highest globally. RBI data shows inward remittances crossed $100 billion annually in recent years, underlining the importance of the Indian diaspora as a source of capital and financial flows.