What are the investment limits for NRIs under the Portfolio Investment Scheme (PIS)?
Non-resident Indians (NRIs) are indeed permitted to invest in shares of listed Indian companies through recognized stock exchanges under the Portfolio Investment Scheme (PIS). These investments can be managed via designated Authorized Dealers (ADs) and can be done on both a repatriation and non-repatriation basis.
The investment limits under the PIS for NRIs are as follows:
Individual NRI investors can invest up to 5% of the paid-up capital or paid-up value of each series of debentures of a listed Indian company.
The total investment by all NRIs combined is capped at 10% of the paid-up capital of the company or 10% of the paid-up value of each series of debentures.
Notably, this aggregate limit of 10% can be increased to 24% if the Indian company's general body approves it through a special resolution.
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