India opens listed equities to all overseas investors, doubles PIS investment limit to 10% 

India has expanded access to its stock market for overseas individual investors by allowing all Persons Resident Outside India (PROIs) to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme (PIS). The move, announced in the Union Budget 2026-27 and notified through the Foreign Exchange Management (Non-Debt Instruments) (Third Amendment) Rules, 2026, is aimed at attracting greater foreign capital and deepening domestic capital markets.

Until now, the PIS route was available only to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs).

As part of the reform, the government has also doubled the investment limit for an individual PROI in a listed company from 5% to 10%. The aggregate investment ceiling for all individual PROIs in a company has been increased from 10% to 24%.

The changes are expected to widen India's overseas investor base, improve market liquidity and make it easier for foreign individuals to participate in India's equity markets.

Commenting on the development, Abhishek Raj, Founder & CEO of Jenika Ventures, said the amendment marks a significant step towards making India's capital markets more accessible and globally competitive.

"The government's decision to implement the Foreign Exchange Management (Non-Debt Instruments) (Third Amendment) Rules, 2026 signals a big move towards strengthening India's capital markets and making the country more appealing to global investors," he said.

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According to Raj, extending the Portfolio Investment Scheme to all individual PROIs creates a more inclusive investment framework and simplifies access for overseas investors seeking exposure to Indian listed companies.

He added that increasing the individual investment limit to 10% and the aggregate cap to 24% demonstrates the government's confidence in the growth prospects of Indian companies.

"This should boost market liquidity, expand the investor base, and make it easier for more capital to flow into India through a simpler process," Raj said.

He also noted that the easing of investment norms, coupled with continued tax incentives on investments in government securities, reinforces India's commitment to providing a transparent and investor-friendly regulatory environment.

"As global investors increasingly seek exposure to high-growth economies, these reforms strengthen India's position as an accessible and competitive investment destination," he added.

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Pyush Lohia, Managing Director of Lohia Worldspace, described the decision as a calibrated reform that balances greater foreign participation with market stability.

"The increase in the individual investment limit from 5% to 10%, along with the rise in the aggregate cap to 24%, reflects a measured approach towards attracting global capital while strengthening market depth," he said.

Lohia said India remains one of the world's most attractive long-term growth markets, and expanding investment opportunities for overseas individuals could improve liquidity, increase market efficiency and enhance capital availability across sectors.

"A broader foreign investor base can contribute to higher liquidity, greater market efficiency and improved capital availability across sectors," he said.

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He added that the move aligns with the government's broader vision of building a more open, resilient and globally integrated financial ecosystem while supporting India's long-term economic growth ambitions.

The latest amendments form part of the government's wider efforts to liberalise foreign investment norms, deepen domestic capital markets and position India as a preferred destination for global investors seeking long-term opportunities.

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