RBI raises NRI, OCI equity caps to 10% in 2026

What the RBI announced on June 5, 2026

Reserve Bank of India Governor Sanjay Malhotra said on June 5, 2026 that the limits for investment in Indian stock market equity instruments without SEBI registration are being increased for non-resident individuals. The change applies to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). The RBI also said the same facility will be extended to all individual Persons Resident Outside India (PROIs). The announcement came as Malhotra concluded the Monetary Policy Committee (MPC) meeting on June 5, 2026. The MPC also decided to continue with the neutral stance. The RBI framed the move as part of a detailed assessment of evolving macroeconomic conditions.

Who benefits: NRIs, OCIs and PROIs

The RBI press release said limits for investment by NRIs and OCIs in equity instruments traded on the stock market without SEBI registration are being increased. It added that the same registration-free facility is being extended to all individual PROIs at par with NRIs and OCIs. In practical terms, this widens the set of overseas individuals who can use the non-registration framework. The change is positioned as an easing of rules for overseas investors in Indian listed equities. The RBI described it as a step that could broaden overseas participation in India’s stock markets.

What “without SEBI registration” means in this context

The article notes that NRIs and OCIs can invest in Indian equities through specific routes that do not require them to register as Foreign Portfolio Investors (FPIs) with SEBI. Under the updated framework, the investment limits available under this registration-free route will be increased. That means eligible overseas individuals will be able to hold larger investments in listed Indian companies without having to undergo a formal SEBI registration process. The RBI’s press release language focuses on “equity instruments traded on the stock market” under this facility.

The revised caps: individual and aggregate limits

Alongside the announcement, the article links the RBI’s decision to changes announced in Budget 2026. Budget 2026 doubled the individual investment ceiling for NRIs in a listed company to 10% from 5%. It also raised the aggregate investment limit to 24%. Another line in the provided text states the individual investment cap is being raised from 5% to 10% and the aggregate limit from 10% to 24% for listed equity instruments without SEBI registration. The RBI has now decided to increase the investment limits available under this registration-free framework and extend it to PROIs.

Key numbers at a glance

How it fits into the June 2026 policy package

The June 5, 2026 announcement was part of a broader set of measures aimed at attracting foreign capital inflows, according to the article text. These included expanding foreign investor access to government securities under the Fully Accessible Route (FAR). The RBI also referred to easing investment restrictions for foreign portfolio investors (FPIs). The measures also included “temporary incentives for foreign currency fundraising,” as stated in the text. Within this package, the NRI-OCI-PROI equity change is specifically about raising limits without requiring SEBI registration.

Timeline: Budget 2026 to RBI operational steps

The article positions the June 5 decision as building on Budget 2026 changes that raised overseas individual and aggregate caps in listed companies. It also says the RBI will operationalise the route under its long-standing Portfolio Investment Scheme (PIS). In the same context, the text mentions applicants completing KYC with a designated bank and receiving a unique investor code that links overseas remittance accounts to domestic brokerages.

Market impact: what the change could and may not do

The text describes the step as significant for broadening participation in Indian capital markets and as a move expected to improve market depth, liquidity and long-term capital inflows. At the same time, one line in the provided material says the move is not likely to “move the needle” on foreign flows. Taken together, the article presents both the policy intent and a more cautious take on immediate flow impact. The factual core is that more categories of overseas individuals will be allowed higher registration-free holdings in listed equities within the stated caps.

Why the extension to PROIs matters

A key addition is that the RBI is extending the same facility to all individual PROIs, putting them on par with NRIs and OCIs. This is framed as a widening of eligibility rather than only raising limits for an existing group. By aligning PROIs with NRI and OCI treatment under this facility, the RBI is standardising access for “all residents outside India” described in the text. The change is therefore both a limit increase and a category expansion.

Conclusion

RBI Governor Sanjay Malhotra’s June 5, 2026 statement confirms higher registration-free equity investment limits for NRIs and OCIs, and extends the same facility to individual PROIs. The MPC maintained a neutral stance the same day, while the RBI also outlined other steps aimed at attracting foreign capital inflows. The key numerical change highlighted in the text is the shift to a 10% individual cap and a 24% aggregate cap in listed companies under the relevant framework. Further implementation details will follow through the RBI’s operationalisation of the route under the Portfolio Investment Scheme (PIS), as described in the provided material.