Portfolio investment scheme now open to PROIs

The Department of Economic Affairs notified an amendment to the Foreign Exchange Management (Non-debt Instruments) Rules, doubling the aggregate investment limit for Persons Resident Outside India (PROIs) in Indian listed companies from 10% to 24%, while retaining the individual holding cap at below 10%. The move, effective immediately, is part of a broader set of measures announced on June 5 to reverse capital outflows and support the rupee, which recovered to 95.08 against the dollar from 95.74 on June 4. Prior government approval remains mandatory for investments from entities in countries sharing a land border with India.