Foreign investors may bet big on Indian stocks after regulatory clarity emerges

The RBI on Monday allowed all foreign individual investors to invest directly in listed Indian companies with immediate effect, a move expected to reduce dependence on foreign portfolio investors and open a new channel for long-term liquidity. Industry participants called it a structural positive that could benefit brokers, exchanges, depositories, custodians, and banks, while family offices, HNIs, and overseas entrepreneurs gain easier access. However, experts cautioned that immediate flows may be limited due to cumbersome documentation, banking formalities, and unresolved tax treatment for foreign individuals investing outside the FPI route.