NRIs Get Bigger Stock Limits

RBI has raised the amount NRIs and OCIs can invest in Indian stocks without needing SEBI registration. This makes it easier and cheaper for your relatives abroad to invest back home in India's stock market.

Here's what happened: RBI Governor announced higher investment limits for NRIs and OCIs to buy Indian stocks without mandatory SEBI registration. Previously, foreign individual investors had lower thresholds beyond which SEBI registration became compulsory — that ceiling has now been raised. The change covers Non-Resident Indians, Overseas Citizens of India, and other individuals living outside India investing through the portfolio route.

What you should do: If you have family abroad, tell them to check RBI's updated NRI investment limits — they may now invest more in Indian equities without extra compliance costs. NRIs already investing via NRE or NRO demat accounts should confirm with their broker whether their current holdings fall within the new limits. Resident Indians with joint family financial goals should revisit asset allocation — NRI family members can now contribute more to Indian equity portfolios directly.

NRIs investing through the Portfolio Investment Scheme (PIS) route via an NRE account get a key tax benefit: long-term capital gains on equity are taxed at the same 12.5% rate as residents, and repatriation of profits is fully allowed — no extra withholding if proper banking channels are used.