RBI plans unified code for foreign investment in equity instruments

The RBI released draft Foreign Exchange Management (Foreign Investment) Rules, 2026, to replace the 2019 Non-Debt Instruments Rules, consolidating provisions on entry routes, sectoral caps and pricing for foreign investment. The draft retains the 10 percent threshold distinguishing FDI from FPI and permits FPI to be reclassified as FDI if holdings cross that level. It expands the definition of eligible investee entities to include REITs, InvITs, AIFs, mutual funds and ETFs, lays out valuation norms for unlisted entities, and bars overseas listings by companies whose promoters or directors are debarred, classified as wilful defaulters or declared fugitive economic offenders.