India has quietly expanded the definition of who may invest in its listed equities from abroad. A Finance-Ministry notification dated 13 June 2026 amended Schedule III of the Foreign Exchange Management (Non-Debt Instruments) Rules, replacing the long-standing category of “Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs)” with the far wider term “individual person resident outside India.” In practice, this means that any foreign individual—whether of Indian origin or not—can now buy, sell or transfer shares of Indian companies on a repatriable basis through recognised stock exchanges. The liberalisation retains important guard-rails.
![India Broadens Overseas Portfolio Investment Rules, Opening Doors for More Expatriates]()
Amid this regulatory opening, many prospective investors will also be evaluating the practicalities of spending more time in India—whether as short-term visitors conducting due diligence or as employees on multi-year postings. VisaHQ’s India desk (https://www.visahq.com/india/) can walk applicants through the appropriate visa category, gather the required documentation online, and submit filings on their behalf, cutting down lead times for both individuals and corporate mobility teams.
A single overseas individual may not hold more than 10 percent of a company’s paid-up capital, and the aggregate ceiling for all such investors remains capped at 24 percent. Investments routed through entities or citizens of countries that share a land border with India continue to require prior government approval, a safeguard introduced in 2020 amid geopolitical tensions with China. For India’s 32-million-strong diaspora—and for globally mobile executives who relocate to India on assignment—the change removes an administrative distinction that often forced families to juggle multiple investment accounts. HR mobility managers note that expatriates who are tax-resident abroad but working on long-term Indian projects can now participate in employee stock-option plans without first obtaining OCI status, simplifying compensation design. Capital-markets specialists believe the move could unlock a new cohort of affluent professionals based in hubs such as Singapore, Dubai and London. “The wording may look cosmetic, but it is a strategic signal that India wants to deepen retail-level foreign participation,” said Ankit Toshniwal, Director at Aeka Advisors. The Securities and Exchange Board of India (SEBI) is expected to issue detailed operational guidelines to brokerages over the coming weeks. Companies planning cross-border assignments should update mobility policies to reflect the new eligibility criteria, and payroll teams should verify whether stock awards granted after 13 June 2026 qualify for the more favourable Schedule III reporting route. While the compliance burden eases, employers must still screen assignees from high-risk jurisdictions and respect the 10 percent individual cap to avoid triggering approval requirements.
Amid this regulatory opening, many prospective investors will also be evaluating the practicalities of spending more time in India—whether as short-term visitors conducting due diligence or as employees on multi-year postings. VisaHQ’s India desk (https://www.visahq.com/india/) can walk applicants through the appropriate visa category, gather the required documentation online, and submit filings on their behalf, cutting down lead times for both individuals and corporate mobility teams.
A single overseas individual may not hold more than 10 percent of a company’s paid-up capital, and the aggregate ceiling for all such investors remains capped at 24 percent. Investments routed through entities or citizens of countries that share a land border with India continue to require prior government approval, a safeguard introduced in 2020 amid geopolitical tensions with China. For India’s 32-million-strong diaspora—and for globally mobile executives who relocate to India on assignment—the change removes an administrative distinction that often forced families to juggle multiple investment accounts. HR mobility managers note that expatriates who are tax-resident abroad but working on long-term Indian projects can now participate in employee stock-option plans without first obtaining OCI status, simplifying compensation design. Capital-markets specialists believe the move could unlock a new cohort of affluent professionals based in hubs such as Singapore, Dubai and London. “The wording may look cosmetic, but it is a strategic signal that India wants to deepen retail-level foreign participation,” said Ankit Toshniwal, Director at Aeka Advisors. The Securities and Exchange Board of India (SEBI) is expected to issue detailed operational guidelines to brokerages over the coming weeks. Companies planning cross-border assignments should update mobility policies to reflect the new eligibility criteria, and payroll teams should verify whether stock awards granted after 13 June 2026 qualify for the more favourable Schedule III reporting route. While the compliance burden eases, employers must still screen assignees from high-risk jurisdictions and respect the 10 percent individual cap to avoid triggering approval requirements.
