What is PROI equity investment India?

It is investment by a person resident outside India in listed Indian equities through the Portfolio Investment Scheme. Budget 2026 set a 10% per-investor cap and a 24% aggregate ceiling. Effective access starts after RBI and FEMA publish operational rules and banks enable onboarding and real-time monitoring.

How do the 10% and 24% limits work together?

The 10% limit applies to each investor’s holding in a company through the Portfolio Investment Scheme. The 24% aggregate limit caps total foreign holdings via this route for all such investors in that company. Orders can be executed only while both limits have room, based on real-time checks.

When will the new route become operational?

The Budget announcement requires RBI circulars and FEMA updates to set procedures. Banks and brokers must also activate account opening and trading controls. Once these are in place, investors can transact. Until then, treat the change as a policy decision awaiting implementation details and systems rollout.

Which stocks may benefit most from the change?

Companies with limited foreign headroom, especially in mid-caps, could see better liquidity and tighter spreads once new limits are active. Actual impact will vary by float, earnings strength, and promoter holdings. Monitor company disclosures and broker limit dashboards to identify names where foreign room is scarce.

How can NRIs start investing under the Portfolio Investment Scheme?

After banks activate the route, open the designated account, complete KYC, and link it to a broker. Keep PAN, OCI or NRI proof, and overseas address ready. Check company-level foreign headroom before placing orders. Follow NRI investment limits and broker guidance to reduce rejection and settlement issues.

Law and Government

February 03: India Lifts PROI Equity Cap to 10%, Opens Portfolio Route

ByHuzaifa Zahoor February 3, 2026February 3, 2026

PROI equity investment India just got a clear boost. Budget 2026 allows persons resident outside India to buy listed equities through the Portfolio Investment Scheme with a 10% per-investor cap and a 24% aggregate limit. The move targets a rebound in FPI flows India after recent outflows. Near-term triggers include RBI and FEMA notifications and faster bank onboarding. If executed quickly, mid-caps with tight foreign room could see better liquidity, improved price discovery, and stronger valuations. As investors, we should track operational timelines and eligibility conditions closely. See coverage by NDTV.