Overview
- Finance Minister Nirmala Sitharaman said Persons Resident Outside India would be allowed to invest in listed equities via the Portfolio Investment Scheme.
- The per-investor limit is proposed to rise from 5% to 10%, with the aggregate cap for all such investors increasing from 10% to 24%.
- The announcement follows sustained foreign outflows in 2025 and January 2026, reported at about Rs 1.6 lakh crore and Rs 35,962 crore respectively.
- Analysts said the step could broaden participation, deepen liquidity and support the rupee, but they cautioned that near-term effects hinge on operational details.
- The Budget also flagged a review of non-debt FEMA rules and set aside Rs 5,000 crore for the City Economic Regions scheme.