Budget 2026–27 Proposes Allowing Individuals Resident Outside India To Invest In Listed Shares Through PIS

The Union Budget 2026–27 on Sunday proposed allowing individuals resident outside India to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme, while also raising the permissible holding limits.

Presenting the budget, Finance Minister Nirmala Sitharaman said, “Individual persons resident outside India will be permitted to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme.”

She announced an increase in individual holding limits, stating, “It is also proposed to increase the investment limit for an individual person resident outside India under the scheme from 5 per cent to 10 per cent.”

The Finance Minister further said, “The overall investment limit for all individual persons resident outside India under the scheme is proposed to be increased to 24 per cent from the current 10 per cent.”

The limits relate to holdings in the paid-up equity share capital of listed Indian companies under the Portfolio Investment Scheme.

The proposal was announced in the context of broader changes to India's foreign exchange and investment framework. Sitharaman said, “I propose a comprehensive review of the Foreign Exchange Management (Non-Debt Instruments) Rules to create a more contemporary and user-friendly framework for foreign investments, consistent with India's evolving economic priorities.”