Union Budget 2026: Individuals resident outside India will be permitted to invest directly in Indian equities through the Portfolio Investment Scheme, substantially expanding access for overseas retail investors. Under the Budget 2026 proposal, the investment limit for a single investor will be increased from 5% to 10%, while the aggregate cap for all such investors in a listed company will be raised from 10% to 24%. Budget 2026 LIVE
“Individual Persons Resident Outside India (PROI) will be permitted to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme. It is also proposed to increase the investment limit for an individual PROI under this scheme from 5% to 10%, with an overall investment limit for all individual PROIs to 24%, from the current 10%,” Union Finance Minister Nirmala Sitharaman said in her Budget Speech 2026-27.
The higher thresholds are expected to enable long-term foreign individual investors to build more meaningful stakes in Indian companies, enhancing price discovery, diversifying shareholding patterns and supporting sustained capital formation in domestic equity markets.
What Does It Mean?
The move establishes a simpler, direct investment pathway for overseas individuals, including Persons of Indian Origin and non-resident Indians, allowing them to invest in shares of Indian listed companies without relying on complex institutional or fund-based structures.
Until now, restrictive ownership caps constrained the ability of such investors to build meaningful stakes in Indian equities. By doubling the individual limit and substantially increasing the aggregate cap, the government is signalling its intent to attract stable, long-term foreign capital. The changes are expected to deepen market liquidity and enhance price discovery, while positioning India to capture stronger foreign portfolio inflows as global risk appetite improves and currency pressures ease.
