RBI Proposes Higher Investment Limits In Equity Instruments For NRIs, OCIs, And Other Overseas Indians

Reserve Bank of India (RBI) Governor Sanjay Malhotra, on the concluding day of the Monetary Policy Committee (MPC) Meeting on June 5, 2026, announced to increase the investment limit in Indian equities for non-resident Indians (NRIs), overseas citizens of India (OCIs), and all other Persons Resident Outside India (PROIs).

Malhotra said in his statement: “The limits for investment by NRIs and OCIs in equity instruments traded on the stock market without the Securities and Exchange Board of India (Sebi) registration are being increased. Further, the same facility is being extended to all individual Persons Resident Outside India (PROIs) at par with NRIs and OCIs.”

Under the existing rules, individual NRIs and OCIs can invest up to 5 per cent of the paid-up equity capital of a listed Indian company under the Portfolio Investment Scheme (PIS) route, whereas the overall ceiling cannot exceed 10 per cent of the paid-up capital of listed companies.

The total holdings in a listed company by all NRIs put together cannot exceed 10 per cent of the paid-up value of shares of an Indian company; however, this ceiling could be increased to 24 per cent, subject to the condition that the general body of the concerned Indian company passes a special resolution to this effect.

PROIs Allowed To Invest

Now, these limits are being increased, and more importantly, PROIs will also be allowed to invest in the same category.

Separately, the Ministry of Finance also issued a statement on June 5, 2026, announcing to increase the limit for PROIs in equity instruments of listed companies through the PIS route, which were available only to the NRIs and OCIs till now. 

Under the Foreign Exchange Management (Non-Debt Instruments) (Third Amendment) Rules, 2026, the investment limit for individual PROIs has been increased from 5 per cent to 10 per cent, and the overall limit for all individual PROIs from 10 per cent to 24 per cent.

The idea is to facilitate mobilisation of more foreign portfolio capital, with easier compliance and other requirements.

How Will This Announcement Unfold?

Vivek Iyer, Partner and Financial Risk Advisory Leader, Grant Thornton Bharat, refers to these changes and says, “There have been some relaxations on limits for retail investors, both NRI / OCI and persons outside India, and extension of time period for realisation of export proceeds. We expect this to have knock-on effects in the form of increased capital immediately within the next 2 months.”

Remittances Growth

Remittances from the Indian diaspora in recent years have seen noticeable growth. According to RBI data, in FY2024-25, gross inward remittances were over $135.46 billion, a significant increase from $1.19 billion in FY2023-24 (a 14 per cent year-over-year increase).

Adequate Foreign Reserve

While emphasising the uncertain global market scenario, disrupted supply chains, and higher crude prices, the RBI governor assured the foreign reserve to be “adequate in terms of the standard metrics of reserve adequacy”. The MPC kept the repo rate unchanged at 5.25 per cent.