RBI notifies norms to operationalise easier equity invest by non-residents
This story was originally published at 21:29 IST on 15 June 2026
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NEW DELHI – The Reserve Bank of India Monday notified directions for banks to allow easier access to persons resident outside India when investing in equity instruments. The norms deal with the classification of the investment and its repatriation are effective immediately.
The government had announced on Jun. 5 that individual persons resident outside India would be able to invest in equity instruments on a par with non-resident Indians and overseas citizens of India. Their investment limit was doubled to a 10% stake in the listed entity, up to 24% in total for all such non-residents. The finance ministry notified the rules on Schedule III investments on Friday, leading to the RBI operationalising the window Monday.
The authorised dealer bank can open a repatriable rupee account for an individual person outside India in the same manner as allowed to non-resident Indians and overseas citizens of India. In a separate notification, the RBI said persons resident outside India can only make Schedule III investments using this account. Sale proceeds can be remitted outside India or added to a designated rupee account.
Banks must put in place procedures to monitor the investment limits and ensure correct classification under foreign portfolio investment and foreign direct investment rules, the banking regulator said. In addition, the banks must ensure compliance of the investor to RBI rules as well as Securities and Exchange Board of India regulations. Authorised dealer banks must report the transfer of equity instruments by such a person to the RBI, the first notification said. End
Reported by Aaryan Khanna
Edited by Deepshikha Bhardwaj
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