Newsletter/Booklets 2nd Feb 2026

Portfolio Investment Scheme limits expanded. Category III AIFs may be negatively impacted

Authors

Vinod JosephPartner | Mumbai

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In the Union Budget 2026, the Hon’ble Finance Minister has proposed a liberalisation of the foreign portfolio investment framework by increasing the individual investment limit for persons resident outside India (PROI) in Indian equities from 5% to 10%. Further, the aggregate cap on PROI holdings in a single Indian company has been raised to 24%, aligning the regime with enhanced capital inflow objectives.

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