Budget 2026–27 Eases Equity Investment Norms for Overseas Indians

The Union Budget 2026–27 has moved to widen foreign participation in Indian equity markets by easing investment rules for Persons Resident Outside India (PROIs), a category that includes Non-Resident Indians (NRIs). The policy shift signals an effort to deepen capital markets while expanding the investor base beyond domestic participants.

A key change is the increase in the individual investment limit under the Portfolio Investment Scheme (PIS). The cap has been raised from 5% to 10%, allowing eligible overseas investors to take larger stakes in listed Indian companies through the regulated portfolio route. In parallel, the overall ceiling for cumulative investments by such investors has also been expanded significantly, creating additional headroom for foreign inflows.

The revised framework is expected to improve market liquidity by enabling higher participation from overseas individuals, whose investments often provide both long-term capital and trading depth. Broader foreign ownership could also support price discovery and reduce volatility arising from concentrated domestic flows.

By liberalising access while retaining the portfolio route’s regulatory structure, the government appears to be balancing openness with oversight. The changes underscore a broader strategy to integrate Indian capital markets more closely with global pools of savings while strengthening the role of equities in financing growth.