Any Foreign Individual Can Now Buy Listed Indian Shares: FEMA Schedule III Opened Beyond NRIs and OCIs, 10% per person, 24% in aggregate.

• Who: any individual resident outside India, including NRIs and OCIs. A US, UK, Japanese or Singaporean individual can now invest directly through an Indian broker on a repatriable basis.
• What: equity and eligible instruments of listed Indian companies bought on recognised stock exchanges.
• Limits: below 10% of paid-up equity per individual; 24% aggregate for all Schedule III individual investors in a company.
• Breach: an individual crossing 10% must sell the excess within five trading days of settlement, or the whole holding is treated as FDI.
• Money: funds come by inward remittance or from repatriable accounts, through a designated repatriable rupee account used only for these investments; sale proceeds can be sent abroad.
• Reporting: the bank reports purchases and transfers on Form LEC (IFI).

• Prior government approval is still needed where ownership or control would pass to entities or citizens of countries sharing a land border with India.
• Sectors that need prior approval for foreign investment still need it.
• Unlisted companies are outside this route; investment there follows the FDI rules.

• Capital gains on listed Indian shares are taxed in India: 12.5% on long-term gains above the annual exemption and 20% on short-term gains, plus surcharge and cess, subject to treaty relief.
• Dividends are taxed in India, with treaty rates available on a Tax Residency Certificate and Form 10F.
• An Indian PAN is needed; Indian returns may be required to claim refunds of excess tax withheld.

Sources: India Briefing: NDI amendment for foreign individuals; TaxGuru: NDI Third Amendment Rules 2026.

Last updated: 28 October 2026. The amendment dates from mid-2026; RBI has also published draft FEMA (Foreign Investment) Rules, 2026 that may replace the NDI Rules. Confirm against the official circular or notification before acting.