Stock Market Update: Speculations have been going on for a long time. This time in Budget 2026, the Modi government has given its seal to that idea. In Sunday’s budget (Union Budget 2026), this historic decision has opened a new horizon for NRIs and Persons of Indian Origin (PIO) to invest in the country’s stock market. Simply put, from now on, it will be much easier and more profitable to increase your share in the Indian stock market even while sitting abroad.
What exactly has been announced in the budget in this regard?
In the Union Budget 2026, the Finance Minister made a big announcement for NRIs and Persons of Indian Origin (PIO) living abroad. From now on, non-resident Indians will be able to buy shares of Indian companies directly through the ‘Portfolio Investment Scheme’ (PIS). As a result, not only has the process of investing in the stock market been simplified, but the investment limit has also been increased a lot.
What has changed?
According to this new proposal of the government, the investment limit has been radically changed:
- Individual investment limit: Earlier, a NRI could buy a maximum of 5% shares of a particular company. Now that limit has been increased to 10%.
- Increase in overall investment limit: All NRIs could hold a total of 10% shares in a listed company. Now that overall limit has been increased to 24%.
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Why this decision?
According to experts, this step will bring long-term foreign capital to India.
1 Direct investment: Now there is no need to rely on complex institutional infrastructure or funds; shares can be purchased directly as an individual.
2 Increase in market investment: Large investments by NRIs will increase the liquidity or cash supply in the market.
3 Transparency in pricing: With more investors coming, it will be easier to determine the correct price of shares (Price Discovery).
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What will be the benefits
With this decision of the government, the Indian diaspora spread across the world will get the opportunity to directly participate in the economic growth of the country. Simple rules and more investment opportunities—all in all, the 2026 Budget is a big ‘gift’ for the NRIs.
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