Module: General Practice
Q160: The Budget 2026-27 proposed a significant change to the Foreign Exchange Management (Non-debt Instruments) Rules regarding "Persons Resident Outside India" (PROI). What is the new investment limit for an individual PROI in the equity capital of a listed Indian company?
✅ Correct Answer: A
The individual investment limit for a PROI has been increased from 5% to 10%. PROI (Person Resident Outside India) refers to foreign individuals (including NRIs/OCIs) investing in Indian markets.
Under the previous Portfolio Investment Scheme (PIS), a single PROI could hold only up to 5% of the paid-up capital of a listed company.
To attract more foreign retail and family office capital, this individual cap is raised to 10%. The budget also proposed increasing the aggregate limit (total holding by all PROIs in a company) from the default 10% to 24%, further easing foreign capital inflows.
Under the previous Portfolio Investment Scheme (PIS), a single PROI could hold only up to 5% of the paid-up capital of a listed company.
To attract more foreign retail and family office capital, this individual cap is raised to 10%. The budget also proposed increasing the aggregate limit (total holding by all PROIs in a company) from the default 10% to 24%, further easing foreign capital inflows.