NEW DELHI – India has significantly liberalized its equity market access for overseas individual investors, effective June 26, 2026. Under new regulations, all Persons Resident Outside India (PROIs) are now permitted to invest in the equity instruments of listed Indian companies through the Portfolio Investment Scheme (PIS).
This reform, announced in the Union Budget 2026-27 and formalized through the Foreign Exchange Management (Non-Debt Instruments) (Third Amendment) Rules, 2026, aims to attract greater foreign capital and deepen the nation's domestic capital markets.
Expanded Investment Opportunities
Previously, the PIS route was exclusively available to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). The latest amendment broadens this scope to include all PROIs, creating a more inclusive framework for global investors seeking exposure to the Indian market.
Key changes include:
- Individual Investment Limit Doubled: The investment limit for an individual PROI in a listed company has been increased from 5% to 10%.
- Aggregate Cap Raised: The overall investment ceiling for all individual PROIs in a single company has been lifted from 10% to 24%.
These adjustments are anticipated to broaden India's overseas investor base, enhance market liquidity, and simplify participation for foreign individuals in India's vibrant equity markets.
Industry Leaders Applaud Reforms
Abhishek Raj, Founder & CEO of Jenika Ventures, commented on the development, stating, "The amendment marks a significant step towards making India's capital markets more accessible and globally competitive." He added that extending the PIS to all individual PROIs simplifies access for overseas investors.
Pyush Lohia, Managing Director of Lohia Worldspace, described the decision as a "calibrated reform that balances greater foreign participation with market stability." He emphasized that India remains an attractive long-term growth market, and expanding opportunities for overseas individuals could improve liquidity and capital availability across sectors.
The government's move aligns with its broader vision to build a more open, resilient, and globally integrated financial ecosystem, reinforcing India's commitment to an investor-friendly regulatory environment.