The Central Government has notified amendments to the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, broadening access for overseas individual investors to invest in listed Indian companies through stock exchanges and raising investment limits under the portfolio investment route.
According to the notification issued by the Department of Economic Affairs on June 12, the existing provisions applicable to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) have been expanded to cover “an individual person resident outside India”. The notification states that “An individual person resident outside India may, on repatriation basis, purchase or sell equity instruments of a listed Indian company and other securities” subject to specified conditions.
Further, the amended Schedule III provides that “The total holding by any individual person resident outside India shall be less than ten per cent of the total paid-up equity capital” of a listed Indian company. The rules also specify that “the total holdings of all individual person resident outside India put together in the Indian company under this schedule shall not exceed twenty four per cent of the total paid-up equity capital”. The amendments effectively widen the investor base beyond NRIs and OCIs and raise the ceiling for overseas individual portfolio investments in listed Indian companies.
The move is expected to make Indian equities more accessible to global retail and individual investors, potentially supporting foreign portfolio inflows and improving market liquidity. Higher permissible ownership limits could particularly benefit large-cap stocks, banks and companies with relatively low foreign shareholding, as they may attract a broader pool of overseas investors.
The notification, however, retains safeguards related to investments that could result in the transfer of ownership or control to entities or citizens of countries sharing a land border with India, requiring prior government approval in such cases. The amended rules came into force from the date of their publication in the Official Gazette on June 12, 2026.
Published on June 15, 2026
