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NRIs Can Now Invest More in Indian Stocks Through Portfolio Scheme

The government has announced that Non-Resident Indians can now invest in Indian equities through the Portfolio Investment Scheme. Finance Minister Nirmala Sitharaman proposed raising the individual investment limit for Persons Resident Outside India from 5% to 10% in the Budget. The overall foreign ownership limit for a company will also increase from 10% to 24%. These measures aim to attract more stable, long-term foreign capital and strengthen India's domestic capital markets.

Key Points: NRI Stock Investment Limits Raised in Budget 2026

  • Higher individual NRI investment limit
  • Increased overall foreign ownership cap
  • Investment via Portfolio Investment Scheme
  • Aim to attract long-term foreign capital
  • Review of FEMA rules announced
2 min read

NRIs can now invest in Indian stocks through Portfolio Investment Scheme

Budget 2026 raises NRI investment limits in Indian stocks via Portfolio Investment Scheme from 5% to 10% per individual to attract foreign capital.

"the investment cap per investor will be raised from 5 per cent to 10 per cent - Finance Minister Nirmala Sitharaman"

New Delhi, Feb 1

The government on Sunday said Indians living abroad can now invest in stocks through the Portfolio Investment Scheme.

Other measures for non-resident investment announced in Budget 2026 including raising the individual investment limit for Persons Resident Outside India (PROIs) from 5 per cent to 10 per cent, increasing the overall investment limit for all PROIs from 10 per cent to 24 per cent, and allowing residents living abroad to invest in Indian equities via a portfolio route.

The Portfolio Investment Scheme allows non-resident Indians and foreign investors to buy and sell Indian stocks through a special bank account approved by the RBI.

The scheme sets clear limits on how much an investor and a company can invest or receive, ensures regulatory compliance, and permits investors to repatriate their funds.

It sets investment limits, usually 5 per cent per individual and 10 per cent total per company, and ensures all transactions follow regulatory rules. Funds invested can be repatriated.

In her Budget speech, Finance Minister Nirmala Sitharaman proposed relaxing these limits for foreign individuals.

She announced that the investment cap per investor will be raised from 5 per cent to 10 per cent, while the overall foreign ownership limit in a company will increase from 10 per cent to 24 per cent.

The new rules will also allow Indians living abroad to invest in Indian equities through the portfolio route.

The government said the higher limits are aimed at bringing more long-term foreign capital into Indian companies by widening the investor base.

This move is expected to attract more stable investment flows and further strengthen India's domestic capital markets.

Meanwhile, Finance Minister also proposed a Rs 5,000 crore outlay for the City Economic Regions scheme. She also announced a review of Foreign Exchange Management Act (FEMA) rules related to non-debt instruments.

- IANS

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Reader Comments

P
Priya S
Good step to attract foreign capital, but I hope the government ensures this doesn't lead to excessive volatility in our markets. We need stable, long-term investment, not hot money.
R
Rohit P
Finally! My brother in Canada has been asking about this. Now he can easily put money into Indian companies he believes in. More investment means more growth for our economy. 👍
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Sarah B
Interesting development. I work in finance in London, and many of my Indian colleagues will welcome this clarity. The increase from 5% to 10% per individual is significant.
V
Vikram M
While attracting NRI money is good, I respectfully think the government should focus equally on making it easier for common retail investors within India to participate in the markets. The paperwork is still a hassle for many.
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Ananya R
This is a win-win. NRIs get to be part of India's growth story, and companies get access to more capital. Hope the FEMA review simplifies things further. Good budget announcement!

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