---
title: "NRI and OCI Investment Rules Eased in 2026: Equity Caps Doubled, Access Widened to All PROIs"
description: "India doubled the individual cap on NRI/OCI stock-market investment to 10% per company, raised the aggregate cap to 24%, and extended the no-SEBI-registration route to all persons resident outside India."
author: "samuel-ortiz"
published: "2026-07-19T00:00:00.000Z"
tags: ["nri","investing","regulations","fema","economy"]
canonical: "https://smartmoney.report/blog/posts/nri-oci-investment-rules-eased-2026-equity-caps-doubled-proi-access-widened"
---

India has significantly widened the door for individual foreign investors in its stock market: the investment cap for NRIs and OCIs in a listed company — without needing SEBI registration — doubles to 10% per individual, the aggregate cap rises to 24%, and the entire facility now extends to all individual Persons Resident Outside India (PROIs).

Announced with the RBI's June 2026 policy package and being implemented through the FEMA (Non-Debt Instruments) (Third Amendment) Rules, 2026, it is the broadest liberalisation of the diaspora-investment regime in years.

## What exactly are the new limits?

| Rule | Before | After |
|---|---|---|
| Individual cap per listed company (NRI/OCI, no SEBI registration) | 5% | 10% |
| Aggregate cap for such holdings in a company | Lower ceiling | 24% |
| Eligible investors | NRIs and OCIs | All individual PROIs, at par with NRIs/OCIs |
| Implementing law | — | FEMA (Non-Debt Instruments) (Third Amendment) Rules, 2026 (being notified) |

The extension to all PROIs is the sleeper change: a foreign national with no Indian passport or OCI card — a Singaporean fund manager's spouse, a US colleague who believes in the India story — can now buy listed Indian equities through the same simplified route, leveraging existing NRI/OCI onboarding infrastructure rather than the full FPI registration machinery.

## Why is India opening up now?

The external context explains the timing. Institutional foreign money proved flighty in 2026 — [₹2.6 lakh crore of equity outflows](/blog/posts/fpis-return-to-indian-equities-with-15157-crore-in-july-after-four-month-selloff) between March and June — while the rupee slid toward 96 per dollar on a crude-inflated import bill. Diaspora capital is the stickier alternative: NRI money tends to arrive with a long horizon and an emotional anchor, and it responds to access, not index momentum. The same June package courted institutional bond money through the [G-Sec tax exemption and FAR expansion](/blog/posts/fpi-income-on-government-securities-made-tax-free-what-changed-and-why-it-matters); this measure courts the individuals.

## What should NRIs (and their advisers) actually do with this?

Treat it as expanded headroom, not an instruction. The caps rarely bind ordinary investors — 10% of a listed company is an enormous position — so the practical wins are subtler: family offices consolidating India exposure in individual names get room; PROIs previously locked out get a route; and estate planning across NRI/OCI/foreign-spouse households gets simpler when everyone faces the same regime.

The unchanged fundamentals still decide outcomes: NRE/NRO account structure, PIS mechanics where applicable, home-country tax treatment of Indian gains, and repatriation rules. Our step-by-step [NRI investing guide for the new rules](/blog/posts/how-nris-can-invest-in-india-under-the-2026-rules-a-practical-guide) walks through the full stack — accounts, routes, taxes and the order to do things in.

Details are as reported in mid-July 2026; the amendment rules were still being notified and thresholds/procedures should be confirmed against the final gazetted text before acting.

## Sources

1. [India Eases Foreign Investment Rules for Equity and G-Secs](https://www.newkerala.com/news/a/govt-opens-wider-doors-foreign-investors-eases-equity-495.htm) (New Kerala) - checked 2026-07-19
1. [FII Investments In G-Secs Tax-Exempt: RBI Takes Measures To Attract Foreign Capital](https://www.fintechbiznews.com/govtregulators/fii-investments-in-g-secs-exempted-from-income-tax) (FinTech BizNews) - checked 2026-07-19
1. [RBI MPC June 2026 highlights: Repo rate unchanged; measures for foreign investors](https://www.forbesindia.com/article/forbesindiablogs/rbi-mpc-june-2026-live-repo-rate-decision-governor-sanjay-malhotra-gdp-data-updates-liveblog/2994645/1) (Forbes India) - checked 2026-07-19