RBI doubles the NRI and OCI equity investment ceiling to 10%
At the 5 June Monetary Policy Committee meeting, RBI Governor Sanjay Malhotra doubled the cap a single overseas Indian investor can hold in a listed Indian company from 5% to 10% — and extended the facility to all overseas individuals, widening diaspora access to Indian equities.
On 5 June 2026, at the close of the Monetary Policy Committee meeting, RBI Governor Sanjay Malhotra announced that the investment limit for a single overseas individual investor in a listed Indian company has been doubled from 5 per cent to 10 per cent of paid-up capital, Business Standard reported.
The aggregate ceiling for all NRIs and OCIs together in a single company stays at 10 per cent, but can be raised to 24 per cent if the company's general body passes a special resolution to that effect.
The bigger structural shift is in who qualifies: the same facility is being extended to all individual Persons Resident Outside India (PROIs) — not only NRIs and OCIs — putting non-Indian-origin foreign individuals on a par with the diaspora for direct equity holdings.
For an overseas Indian investor, the practical effect is the ability to take a larger, more meaningful position in a single Indian listed company than the old 5 per cent rule allowed — part of a broader push to draw diaspora and foreign capital into India's markets.
Sources: Business Standard · Outlook Money · Goodreturns.
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