The Reserve Bank of India (RBI) on June 15, 2026, issued a circular regarding the Liberalisation of Foreign Portfolio Investment under Schedule III of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
The following has been stated:-
•The Reserve Bank of India has liberalised the Foreign Portfolio Investment (FPI) framework by permitting all individual persons resident outside India, and not just NRIs and OCIs, to invest in equity instruments of listed Indian companies under Schedule III of the FEMA (Non-Debt Instruments) Rules, 2019.
•AD Category-I banks may now open repatriable INR accounts for such investors and must follow existing reporting and investment-limit monitoring procedures.
•Investments breaching prescribed limits may be reclassified from FPI to FDI in accordance with RBI guidelines. Banks are required to ensure compliance with FEMA Rules, Regulations, and applicable SEBI regulations through appropriate systems and disclosures.
•The revised directions have come into effect immediately.
The detailed circular is given in the document below.
[Circular No.: RBI/2026-27/114 A.P. (DIR Series) Circular No. 14]
