Govt notifies FEMA amendments, opens listed equity investments to all overseas individuals
New Delhi, June 15
The Central Government has notified amendments to the Foreign Exchange Management Rules, 2019, broadening access for overseas individual investors to invest in listed Indian companies through stock exchanges and raising investment limits under the portfolio investment route.
According to the notification issued by the Department of Economic Affairs on June 12, the existing provisions applicable to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) have been expanded to cover "an individual person resident outside India".
The notification states that "An individual person resident outside India may, on repatriation basis, purchase or sell equity instruments of a listed Indian company and other securities" subject to specified conditions.
Further, the amended Schedule III provides that "The total holding by any individual person resident outside India shall be less than ten per cent of the total paid-up equity capital" of a listed Indian company.
The rules also specify that "the total holdings of all individual person resident outside India put together in the Indian company under this schedule shall not exceed twenty four per cent of the total paid-up equity capital".
The amendments effectively widen the investor base beyond NRIs and OCIs and raise the ceiling for overseas individual portfolio investments in listed Indian companies.
The move is expected to make Indian equities more accessible to global retail and individual investors, potentially supporting foreign portfolio inflows and improving market liquidity. Higher permissible ownership limits could particularly benefit large-cap stocks, banks and companies with relatively low foreign shareholding, as they may attract a broader pool of overseas investors.
The notification, however, retains safeguards related to investments that could result in the transfer of ownership or control to entities or citizens of countries sharing a land border with India, requiring prior government approval in such cases.
The amended rules came into force from the date of their publication in the Official Gazette on June 12, 2026.
— ANI
Reader Comments
Finally! Non-Resident Indians like me have been waiting for this. Now I can invest directly in Indian stocks without all the earlier restrictions. 'Beta, ab ghar wapas aana asaan ho gaya' 😊
Smart policy. But we need careful monitoring of inflows from border-sharing nations. The safeguard clause shows govt is aware of security concerns. Balanced approach, I'd say.
As a retail investor, I'm a bit concerned about potential volatility from more foreign players. But overall, more capital flowing in should be good for market depth. Let's hope the regulators keep tight watch on 'hot money' flows.
As an overseas investor, this makes India much more attractive. The 10% individual cap and 24% aggregate limit seem reasonable. Good to see India opening up while maintaining national security filters.
The notification is clear about border-sharing nations needing prior approval - that's crucial for national security. India is signaling maturity in capital markets while keeping strategic interests secure. Well played, govt.
This should be a boost for Indian startups too! More global capital means better valuations. But I hope domestic retail investors don't get crowded out. 'Sabka saath, sab
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