NewsGate Press Network
The Finance Ministry has announced series of measures aimed at attracting greater foreign investment into the equity and government securities markets.
The measures announced on Friday the 5th of June 2026 are aimed to make investment in Indian markets easier, improve market access for overseas investors and encourage long-term foreign capital inflows.
As part of the reforms, individual Persons Resident Outside India (PROIs) will now be allowed to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme, a facility that was earlier available only to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs).
The government has also increased the investment limit for an individual PROI from 5 per cent to 10 per cent in any listed company.
The overall investment limit for all such investors has been raised from 10 per cent to 24 per cent.
According to the Finance Ministry release, the move will simplify investment procedures, reduce compliance requirements and help attract a wider pool of foreign investors to Indian equity markets.
In another significant decision, the government has expanded the list of government securities available under the Fully Accessible Route (FAR) by including new issuances of 15-year, 30-year and 40-year government bonds, along with Sovereign Green Bonds in eligible tenors.
The government has also eased investment norms for Foreign Portfolio Investors (FPIs) in government securities by removing restrictions related to short-term investments, concentration limits and security-wise investment limits.
The overall investment caps in Central and State government securities, however, will continue.
To further encourage foreign participation, the government has exempted FPIs from income tax on interest income and capital gains arising from investments in government securities.
The exemption will be effective from April 1, 2026.
A similar tax exemption has also been extended to the Bank for International Settlements (BIS) for income earned from investments in government securities.
The Finance Ministry said the reforms are aimed at reducing operational complexities, simplifying market access and creating an investment environment comparable with leading global financial markets.
The measures are expected to expand the investor base for Indian equities and government securities while supporting stable long-term foreign capital inflows into the country.
