Outlook Business Desk
The RBI has eased investment norms for Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and other overseas investors. The proposal may allow higher investments in listed Indian companies without requiring SEBI registration.
Earlier, investors looking for higher exposure to Indian equities often needed Foreign Portfolio Investor (FPI) registration. The proposed changes may allow larger investments through simpler routes, reducing paperwork and compliance requirements for overseas participants.
The updated framework is not limited to NRIs and OCIs. It also includes Persons Resident Outside India (PROIs), widening access for a broader group of global investors in Indian markets.
After Budget 2026, investment limits for NRIs, OCIs and PROIs were raised from 5% to 10% individually. The combined holding limit for such investors was also increased from 10% to 24%, expanding overall participation scope.
The Reserve Bank of India has signalled that investment limits may be increased further in the future. However, detailed operational guidelines are still awaited, leaving investors watching for clearer implementation rules.
NRIs and OCIs usually do not need SEBI registration for regular stock investments if they remain within prescribed limits. SEBI registration becomes relevant mainly under the FPI route.
Market experts believe easier investment rules could bring higher foreign capital inflows into India. This may improve liquidity, boost investor confidence and help listed companies attract stronger global participation.
Current regulations continue to place limits on foreign ownership in Indian companies. Individual investors remain subject to company-specific and sector-specific restrictions, while sectors such as defence operate under tighter investment caps.
Non-Resident Indians can invest in Indian equities through structures such as NRE-PIS, NRO-PIS and NRO Non-PIS accounts. The type of account determines which investment products and trading activities can be accessed.