The Reserve Bank of India doubled the equity investment limits for NRIs and OCIs on June 5, 2026. RBI Governor Sanjay Malhotra announced the change on the last day of the monetary policy meeting. As an individual investor, you can now hold up to 10% of a listed company's paid-up capital, up from 5%. All NRI and OCI investors together can hold up to 24% of a company, up from 10%.
You do not need to register with the market regulator SEBI to use this route. So if you have been asking whether you can invest in the Indian stock market as an NRI in a bigger way, the answer is now yes.
What changed on June 5, 2026
The RBI raised the ceilings for NRI and OCI investment in equity instruments traded on Indian stock exchanges. The announcement came at the close of the Monetary Policy Committee meeting on June 5, 2026. You can read the official Governor's statement on the RBI website.
Until now, one NRI or OCI could hold up to 5% of a listed company's paid-up capital. All NRI and OCI holdings together could not cross 10% of the company. A company could raise that combined cap to 24%, but only by passing a shareholder resolution. Most companies never did.
The RBI's new rules for NRIs remove that friction.
The table below compares the old and new RBI NRI investment limits.
| Rule | Before June 5, 2026 | Now |
|---|---|---|
| Limit for one NRI or OCI in a listed company | 5% of paid-up capital, on a repatriation basis | 10% of paid-up capital |
| Combined limit for all NRI and OCI investors | 10%, could rise to 24% only with a company resolution | 24% |
| SEBI registration needed | No | No |
| Who can use the route | NRIs and OCIs | All individual persons resident outside India |
News reports link the doubling of the caps to a proposal in the Union Budget 2026, which the RBI has now carried into its regulatory framework. In the same announcement, the central bank expanded the Fully Accessible Route for government securities and added incentives for FCNR(B) deposits and external commercial borrowings.
One caution. The RBI will issue detailed directions to bring the change into force. The effective date will come through that circular, so confirm the rules are live before you act on the new limits.
How much can an NRI invest in the Indian stock market now?
There is no overall NRI investment limit in Indian stocks. The caps apply to your share of one company, not your total portfolio. You can put Rs 10 lakh or Rs 100 crore into Indian equities spread across many companies. The NRI shareholding limit in a listed company is what changed: your stake in any single company can now reach 10% of its paid-up capital, and all overseas Indian investors together can own up to 24% of it.
How this affects NRIs investing in the Indian stock market
More headroom, mainly for large investors
Take Priya, a Dubai based business owner. She wants a bigger stake in her family's listed textile company, which has paid-up capital of Rs 200 crore. The old NRI equity investment ceiling capped her stake at 5% of the company's shares. She can now own up to 10%, double the position she could legally build last month.
Most retail investors never touch these caps. Rahul, a software engineer in Texas, invests Rs 60 lakh across 15 large companies through his NRE account. His stake in each company is a tiny fraction of 1%, so the limits never applied to him and still do not.
The combined 24% room is the real shift for everyday investors. Earlier, popular mid cap and small cap stocks could hit the 10% group ceiling, and banks would then block fresh NRI purchases in those names. That blocker now sits much higher, so fewer stocks will go off limits for you.
The size of the opportunity also explains the RBI's timing. NRI investment in the Indian stock market stood at about Rs 5.2 lakh crore as of March 2026, against a total market value of around Rs 461 lakh crore, according to Moneycontrol. That is just over 1% of the market. The RBI wants that share to grow.
What stays the same
The route itself does not change. You still buy on a repatriation basis through an NRE account if you want to move the money abroad later, or on a non repatriation basis through an NRO account. The same FEMA rules on reporting and fund transfers apply, and capital gains tax on your Indian stock sales stays exactly where it was.
If you live in the US, your American duties continue too. Your Indian bank and demat accounts count toward FBAR reporting once your total foreign balances cross $10,000, and FATCA disclosure rules still apply.
If you hold an OCI card, you can invest in Indian stocks on the same terms as NRIs. OCI investment in the Indian stock market gets identical treatment under this route, including the new 10% and 24% ceilings.
What you should do now
The change rewards investors who are ready before the directions take effect.
- Set up your accounts. You need an NRI demat account linked to an NRE or NRO account before you can buy a single share. The paperwork takes a few weeks, so start early.
- Review your large positions. If you hold a concentrated stake in one company, map it against the new 10% room and decide whether you want to add. Set an exit discipline as well. Some investors follow the 7% rule: they sell a stock or ETF that falls 7% to 8% below their purchase price to cap losses.
- Match the money to your goals. Decide how much should stay repatriable, and compare stocks with other investment options in India before adding more equity.
- Wait for the fine print. The higher limits and the PROI extension take effect through RBI directions. Do not commit money based on the announcement alone.
What happens next
The RBI is expected to issue an implementing circular under FEMA, most likely as an update to its master direction covering foreign portfolio investment by non residents. Market experts do not expect a flood of money overnight. Research heads at Groww and Omniscience Capital told Moneycontrol that inflows should build gradually as overseas investors learn about the change and brokers update their systems.
India is competing hard for global capital. The United States has long attracted more foreign investment than any other country, and every extra rupee of NRI participation strengthens India's position in that race. Rules can change again, so verify the current limits with your bank or advisor before large decisions.
Conclusion
The RBI's June 5, 2026 move doubles your individual cap in a listed company to 10% and lifts the group ceiling for NRIs and OCIs to 24%. For most investors, the bigger story is simpler access: you can invest in the Indian stock market as an NRI without SEBI registration, and soon any individual living outside India can do the same.
Your one job right now is preparation. Get your accounts in place, watch for the RBI's directions, and decide in advance how much of your portfolio belongs in Indian equities.
Frequently asked questions
How much did the RBI increase the NRI investment limit?
The RBI doubled the individual limit from 5% to 10% of a listed company's paid-up capital, a 100% increase. The combined limit for all NRI and OCI investors in a company went up from 10% to 24%, an increase of 14 percentage points. Both changes were announced on June 5, 2026. The new caps apply per company, not to your total portfolio.
Can NRIs invest in the Indian stock market without SEBI registration?
Yes. NRIs and OCIs buy listed Indian stocks through a bank linked route that needs no SEBI registration. You open an NRE or NRO account, add a demat and trading account, and route purchases through your bank's designated branch. The June 2026 change raises how much you can own, not the paperwork.
Can NRIs invest in RBI bonds?
You can buy Indian government securities as an NRI. The RBI Retail Direct platform lets NRIs invest in government bonds that fall under the Fully Accessible Route. You cannot buy the RBI Floating Rate Savings Bonds 2020, which are open only to residents.
How much money can NRIs keep in India?
There is no upper limit. You can hold any amount in NRE, NRO, and FCNR(B) accounts and in Indian investments. Interest on NRO balances is taxable in India and TDS applies. If you live in the US, remember that large Indian balances trigger FBAR and FATCA reporting.