What are the investment limits for NRIs under the Portfolio Investment Scheme (PIS)?
Under the Portfolio Investment Scheme (PIS), Non-Resident Indians (NRIs) are allowed to invest in listed shares and convertible debentures of Indian companies on recognised stock exchanges. These investments must be routed through Authorized Dealer (AD) banks and can be made on a repatriation or non-repatriation basis.
Investment limits for NRIs under PIS
- Individual limit: An individual NRI can invest up to 5% of the paid-up capital or paid-up value of each series of debentures of a listed Indian company.
- Aggregate limit: The total NRI investment in any given company is capped at 10% of the company’s paid-up capital or debenture value.
- Enhanced limit option: The aggregate limit can be increased to 24% if the company passes a special resolution in its general body meeting to allow for it.
These caps help regulators monitor foreign investment and prevent breaches of ownership thresholds in sensitive sectors.
What if...
| Scenario | What you should know |
|---|
| The 10% aggregate limit is reached | The company gets placed on the RBI watch list; no more NRI buying is allowed |
| You're investing in multiple classes of shares | Limits apply per class or series of security |
| The company passes a special resolution | Aggregate NRI limit can be raised to 24% — confirmed via RBI circulars |
To avoid investment rejections, always check if a company is on RBI's caution or ban list for NRI/FII investments before initiating trades.
Last updated: 25 Jun 2025
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