New Budget Measures to Ensure Stock Market and Rupee Stability

In the Union Budget 2026–27, the government has provided Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) the opportunity to make direct investments in the Indian capital markets. Until now, these investors could participate in Indian equity markets only through Foreign Portfolio Investment (FPI) or Foreign Direct Investment (FDI) routes.

According to Finance Minister Nirmala Sitharaman, the individual investment limit for NRIs and PIOs will be increased from 5% to 10%, while the total investment limit in a listed company will rise from the existing 10% to 24%. These new provisions, however, will apply only through the Portfolio Investment Scheme (PIS) and will cover shares purchased on recognized stock exchanges and convertible debentures.

Previously, NRIs and PIOs were required to invest only through banks recognized under FEMA regulations. Going forward, they will be able to invest directly in Indian equities without FPI registration, using KYC-compliant banking channels. The Reserve Bank of India (RBI) is expected to issue detailed guidelines in the coming weeks regarding this process. Experts believe that this move will contribute to stability in the domestic stock market and support the stability of the rupee exchange rate.