The government announced that Indians residing overseas can now participate in stock investments through the Portfolio Investment Scheme (PIS). Budget 2026 introduced various measures for non-resident investments, such as doubling the individual investment limit for Persons Resident Outside India (PROIs) from 5% to 10% and raising the overall investment cap for all PROIs from 10% to 24%. Additionally, residents living abroad are now permitted to invest in Indian equities via a portfolio route.
The Portfolio Investment Scheme enables non-resident Indians and foreign investors to trade Indian stocks using a designated bank account approved by the RBI. This scheme establishes specific limits on individual and company investments, ensures compliance with regulations, and allows investors to repatriate their funds. Typically, the scheme imposes investment limits of 5% per individual and 10% per company, ensuring adherence to regulatory guidelines and facilitating fund repatriation.
In her Budget speech, Finance Minister Nirmala Sitharaman proposed relaxing the existing limits for foreign individuals. She announced an increase in the investment cap per investor from 5% to 10% and a rise in the overall foreign ownership limit in a company from 10% to 24%. These new regulations also enable Indians residing abroad to engage in Indian equities through the portfolio route.
The government emphasized that the enhanced limits aim to attract more long-term foreign capital into Indian enterprises by broadening the investor pool. This strategic move is anticipated to draw more stable investment streams, thereby bolstering India’s domestic capital markets. Meanwhile, the Finance Minister proposed a Rs 5,000 crore allocation for the City Economic Regions scheme and announced a review of Foreign Exchange Management Act (FEMA) rules pertaining to non-debt instruments.
