/images/ppid_59c68470-image-176992752482174101.webp)
What is the story about?
In the Union Budget 2026-27, Finance Minister announced a relaxation in rules governing investments by Persons of Indian Origin (PIOs), classified as Persons Resident Outside India (PROIs), allowing them to invest directly in Portfolio Management Services (PMS) in India instead of routing funds through GIFT City.
As part of the changes, the individual investment limit for PROIs in PMS has been increased from 5% to 10%, providing greater flexibility for overseas-based Indian investors to participate in domestic capital markets.
Additionally, the overall cap on investments by PROIs in PMS schemes has been raised sharply to 24% from the earlier limit of 10%, giving fund managers significantly more room to accept overseas capital from this category of investors.
The move is expected to simplify compliance, reduce transaction costs, and potentially boost foreign participation in India’s asset management industry, subject to market conditions and global investment sentiment.
This is a developing news
Catch LIVE updates on Budget here
As part of the changes, the individual investment limit for PROIs in PMS has been increased from 5% to 10%, providing greater flexibility for overseas-based Indian investors to participate in domestic capital markets.
Additionally, the overall cap on investments by PROIs in PMS schemes has been raised sharply to 24% from the earlier limit of 10%, giving fund managers significantly more room to accept overseas capital from this category of investors.
The move is expected to simplify compliance, reduce transaction costs, and potentially boost foreign participation in India’s asset management industry, subject to market conditions and global investment sentiment.
This is a developing news
Catch LIVE updates on Budget here
/images/ppid_a911dc6a-image-176992555086324088.webp)
/images/ppid_59c68470-image-176992512547929837.webp)
/images/ppid_59c68470-image-176992509434840668.webp)
/images/ppid_59c68470-image-176992503869175626.webp)
