In the Union Budget 2026–27 presented on February 1, 2026, Finance Minister Nirmala Sitharaman announced a major change to investment rules for individuals living abroad, aimed at encouraging greater participation in Indian financial markets.
Under the updated regulations, persons resident outside India (PROIs) — including Non-Resident Indians (NRIs) and people of Indian origin — will now be allowed to invest up to 10% of a listed company’s equity through the Portfolio Investment Scheme (PIS), up from the earlier 5% cap.
In addition to raising the individual limit, the overall cap on equity holdings by all individual overseas investors has been increased to 24%, up from the previous 10% threshold. These expanded limits aim to attract more foreign capital, broaden the investor base, and deepen India’s equity markets.
The Finance Minister underscored that this reform will make the Indian financial market more accessible and competitive internationally, offering overseas investors greater scope to participate in India’s growth story.
The move is seen as part of broader efforts in Budget 2026 to boost capital inflows and strengthen financial market infrastructure, alongside other reforms aimed at simplifying rules and encouraging long-term investment from global Indian investors.
