NRI · 8 min read
5 Ways India Made NRI Investing Easier in 2026 — Budget and RBI Changes Explained
By Inderpreet Singh, QPFP · NISM Certified Investment Advisor L1 · June 2026 · 8 min read
In June 2026, RBI announced a significant easing of investment norms for NRIs and OCIs — removing the SEBI registration requirement for direct equity investing below the new higher limits. This came on top of Budget 2026 changes announced in February that doubled individual NRI investment limits, cut TCS on remittances, and introduced a foreign asset disclosure amnesty.
Taken together, this is the most NRI-friendly policy environment India has created in a decade. Here is what changed, what it means practically, and what you should do about each of them.
5% to 10%
NRI equity limit
Per individual in any listed company
10% to 24%
Aggregate NRI limit
All NRIs combined
June 2026
RBI SEBI change
Registration-free equity investing
NRI equity investment limit doubled — from 5% to 10%
What changed
Under the Portfolio Investment Scheme (PIS), individual NRIs and OCIs can now own up to 10% of any single listed Indian company, up from the previous 5% cap. The aggregate limit for all NRIs combined in any one company has been raised from 10% to 24%.
Why it matters
For most NRIs investing through mutual funds and SIPs, this limit was never the binding constraint. The real significance is for NRIs building concentrated positions in specific Indian companies — founders, early employees returning home, and HNI investors who want meaningful stakes. The higher limit also signals India's intent to treat NRI capital on par with domestic institutional investors.
What to do
If you invest through NRE or NRO accounts under PIS, your broker will automatically apply the new limits. No action required unless you have been specifically capped at 5% on a particular stock.
SEBI registration no longer required for NRI equity investing
What changed
RBI announced in June 2026 that NRIs, OCIs, and all individual Persons Resident Outside India (PROIs) can now invest in Indian listed equities below the new limits without requiring formal SEBI registration as a Foreign Portfolio Investor.
Why it matters
Previously, NRIs who wanted to invest directly in Indian stocks needed to either use the PIS route through their bank or register as an FPI with SEBI — a process involving compliance documentation, custodian appointment, and ongoing reporting requirements. The removal of this requirement significantly reduces the friction and cost of direct equity participation for individual NRIs.
What to do
If you already invest through NRE/NRO PIS account, nothing changes for you. If you were holding off direct equity investing because of the registration complexity, that barrier is now removed. Your bank's NRI investment desk can onboard you for direct equity purchases without the SEBI FPI registration step.
Foreign asset disclosure amnesty window — one-time clean-up
What changed
Budget 2026 introduced a one-time disclosure scheme for NRIs who have undisclosed or accidentally undeclared foreign assets. This includes overseas bank accounts left open after returning from abroad, company shares received but not declared, foreign property inheritances, and other assets that were technically reportable but missed.
Why it matters
India's Black Money Act carries severe penalties for undisclosed foreign assets — including prosecution in some cases. Many NRIs have dormant accounts or forgotten assets that technically required declaration but were genuinely missed rather than deliberately hidden. The amnesty window lets them regularise their position legally, pay the applicable tax or fee, and close the compliance gap without fear of disproportionate consequences.
What to do
If you have any foreign accounts, shares, or property that you have not declared in your Indian tax returns, consult a qualified CA or tax advisor before this window closes. The exact deadline has not been finalised but the Budget speech indicated a six-month window from implementation.
Lower TCS on remittances — overseas spending gets cheaper
What changed
Budget 2026 cut Tax Collected at Source (TCS) on overseas tour packages to a flat 2%, down from the previous tiered structure of 5% on the first Rs 7 lakh and 20% above that. TCS on education remittances through loans was already at 0.5% and remains unchanged.
Why it matters
TCS is not a tax — it is an advance tax collection that you can claim back when filing your Indian tax return. But it creates a cash flow burden, especially for NRIs remitting large amounts for family needs, property purchases, or education. The reduction to 2% is a practical improvement even if the eventual tax position is the same.
What to do
If you remit money to India for property purchases, family support, or education, your bank will collect 2% TCS on applicable transactions instead of the previous higher rates. You can claim this back in your Indian tax return if your total Indian income is below the taxable threshold.
Property transaction rules simplified — effective October 2026
What changed
The government has simplified the rules governing NRI property transactions in India, including sale, purchase, and repatriation of sale proceeds. The updated rules take effect from October 1, 2026, and are designed to reduce the documentation burden and processing delays that NRIs face when selling Indian property.
Why it matters
Selling inherited or previously purchased Indian property as an NRI has historically involved multiple layers of compliance — TDS deduction by the buyer, repatriation approvals, Form 15CA/CB requirements, and CA certificates. The simplification is expected to reduce the number of forms required and streamline the repatriation process for NRIs selling property with genuine, clean proceeds.
What to do
If you are planning to sell Indian property in 2026, wait until October 2026 when the new rules take effect before completing the transaction. Check with your CA whether the simplified rules materially reduce your compliance burden for your specific transaction.
What Has Not Changed — And Still Matters
The regulatory changes make investing easier but do not change the fundamentals of NRI investing in India. NRE accounts remain the cleanest route for repatriable investments — interest is tax-free in India and principal plus interest can be freely sent abroad. NRO accounts are for non-repatriable income such as rent and Indian dividends. Mutual fund SIPs through NRE are still the most practical way for most NRIs to build long-term India exposure without the complexity of direct equity.
DTAA benefits with UAE, USA, UK, Canada, and Singapore remain in place — ensuring you do not pay double tax on the same income in both countries. And the process for filing Indian tax returns as an NRI remains unchanged, though the new income tax code effective April 2026 brings some simplification in the filing structure.
For the complete framework on how NRIs should structure their India investments across NRE, NRO, and mutual funds, read our NRI investing in India complete guide. For NRIs specifically in the UAE, USA, and UK, we have country-specific guides covering DTAA, account types, and tax treatment:
The Bottom Line
The combination of Budget 2026 and RBI's June 2026 changes removes several genuine friction points that NRI investors have faced for years. Higher equity limits, no SEBI registration, lower TCS, a compliance amnesty window, and simplified property rules collectively make 2026 the easiest year in recent memory to invest in India as an NRI.
The opportunity to participate in India's growth story is more accessible than it has ever been. The question is whether you structure that participation correctly — the right account types, the right investment vehicles, and the right tax planning for your country of residence.
Inderpreet Singh is a QPFP qualified financial planner and NISM Certified Investment Advisor L1, AMFI registered MF Distributor (ARN-357884) based in Gurgaon, serving NRI clients across UAE, USA, UK, Canada and Australia.
This article is based on Budget 2026 announcements and RBI circulars as of June 2026. Rules are subject to change. Consult a qualified CA or financial advisor for personalised guidance on your specific situation. Mutual fund investments are subject to market risks.