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Sanjay Malhotra, governor of the Reserve Bank of India has stated on June 5, 2026 that the limits for investment in the Indian stock market without SEBI registration is being increased for non-resident individuals (NRIs), overseas citizens of India (OCI) and all individual persons residents outside India. This means now OCI, NRIs and other residents outside India can invest a even larger amount of money without getting a SEBI registration thanks to the enhanced limits.The RBI press release dated June 5, 2026 said: "The limits for investment by NRIs and OCIs in equity instruments traded on the stock market without SEBI registration are being increased. Further, the same facility is being extended to all individual Persons Resident Outside India (PROIs) at par with NRIs and OCIs."Adhil Shetty, CEO, Bankbazaar said to ET Wealth Online that the RBI's decision simplifies access to Indian equities for NRIs and OCI cardholders by allowing them to invest larger amounts in listed shares without having to obtain SEBI registration. The move reduces compliance requirements and administrative hurdles, making participation in Indian capital markets more convenient.Shetty says: "It also broadens investment flexibility for overseas Indians who want exposure to India's growth story but may not wish to register as foreign portfolio investors (FPIs)."The guidelines, quantum of the limits and detailed framework for this new development about investment in Indian stock market by NRI, PROI and OCI investors is expected to be announced soon.Vivek Iyer, Partner and Financial Services Risk Leader, Grant Thornton Bharat in a statement has said that all the measures announced by the RBI governor were focused around increasing access to foreign exchange through increased foreign capital, fuelling long term growth support while also boosting foreign exchange reserves to deal with the increased currency volatality, reflecting a mature approach from a stable regulator.Tanuj Shori, Founder & CEO, Square Yards said in a statement that the measures announced to encourage greater participation by NRIs, OCIs, and foreign investors in Indian financial markets are a significant positive for the broader economy.Shori says: "By facilitating higher overseas investments and enhancing the attractiveness of Indian debt and equity markets, these initiatives are expected to support capital inflows and likely to strengthen investor confidence."What are the present requirements for NRIs to invest in the stock market?Shetty says that NRIs and OCI cardholders generally do not require SEBI registration for routine investments in Indian listed shares under the prescribed investment routes and limits.Shetty says: "SEBI registration becomes relevant when investments are made under the Foreign Portfolio Investor (FPI) framework, particularly for larger or institutional-style investments that exceed permitted thresholds or require access to broader categories of securities."This means that NRIs, PROIs and OCI cardholders can now benefit from the proposed increase in the limits for investing in the Indian stock market without SEBI registration, using a much simpler route before FPI registration becomes necessary.Present rules for NRIs investing in India has some specified limitsAs per Zerodha's website, the Reserve Bank of India (RBI) mandates PIS to ensure foreign investment in Indian companies stays within government-set limits. These limits exist for several reasons:Individual investment limits: NRIs cannot invest more than 5% in any single Indian company.Company-wise investment limits: All NRIs combined cannot exceed certain investment percentages (10%, 24%, 30%, 40%, or 49%) in any company, depending on the company and business sector.Sector-wise investment limits: Different business sectors have varying foreign investment rules. For example, in defence companies, all foreign investors (including NRIs) cannot own more than 24% of the company together.According to Zerodha's website, if a NRI opens a Portfolio Investment Scheme (PIS) account with an eligible Indian stock market then investments can be made from both NRE and NRO bank accounts. But if the NRI wants to invest only via his NRO bank account then non-PIS method can also be used.Zerodha's website also said that as an NRI, you can choose to open an NRO–Non-PIS account, an NRO–PIS account, or an NRE–PIS account. To trade in the equity segment, an NRE–PIS account is required, while trading in the future and option (F&O) segment requires an NRO–NON-PIS account.