The 2026 FEMA third amendment significantly expands portfolio investment eligibility beyond NRIs and OCIs, allowing all individuals resident outside India to invest in Indian markets. This change also increases investment limits and implements stricter approval norms.
FEMA Third Amendment Expands Investment Framework
The recent amendment to the Foreign Exchange Management Act (FEMA) in 2026 has redefined the portfolio investment landscape by extending eligibility from Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) to all foreign individuals residing outside India. This legislative change comes with enhanced investment limits and more stringent approval requirements for specific investment types.
This amendment signifies a broader inclusivity in attracting global investments while still maintaining necessary safeguards for sensitive sectors. It illustrates India's ongoing commitment to liberalizing foreign investments amidst changing global economic dynamics.
The legal community should carefully assess the implications of this amendment, especially concerning compliance with the new stipulations for foreign investors and the administrative responsibilities of companies within India's regulatory framework.
Citations
- FEMA Third Amendment (2026) Gazette Notification
