The last Sebi board meeting effectively opened several new investment avenues by adding a long list of assets to investors’ investable universe. One of the key beneficiaries of this reform is NRIs, who, between June and August, pumped in a whopping $133 billion into their bank accounts back home (through FCNR(B) deposits), earning much higher yields ranging from 6.1% to 6.9%. They can also access leveraged loans of 9x to 19x at attractive pricing after the RBI opened a special forex swap window on June 8.
Sebi has now allowed non-resident Indians (NRIs) and persons resident outside India (PROIs) to invest their savings in domestic equities, listed corporate debt and directly in IPOs through portfolio managers. The new PMS (portfolio management services) framework completely replaces the 2020 rules.
As of June 2026, the domestic PMS industry was managing assets worth Rs 3.8 lakh crore. PMS for NRIs is a Sebi-regulated investment solution in which a qualified portfolio manager builds and manages a personalised portfolio of domestic securities and other asset classes on your behalf. The assets are held directly in your own demat account rather than in a pooled fund, giving you transparency and direct ownership.
These changes address several historical pain points faced by NRIs/PROIs, such as rigid ownership caps, high entry barriers and limited asset choices. The latest regulatory updates could help NRIs and PROIs expand their wealth-creation opportunities by investing in domestic asset classes through PMS. For NRIs looking to invest back home, the investment window is now significantly wider.
Sebi’s announcement also draws from the Budget proposal that doubled the individual NRI/PROI investment ceiling in listed domestic stocks from 5% to 10% by strengthening the portfolio investment scheme framework. This signals a policy push to bring more NRI capital into domestic markets. PMS fund managers can now take larger, higher-conviction stakes in specific listed domestic companies on behalf of clients, without hitting regulatory ceilings, while also opening up access to IPOs.
What are the changes?
Lower entry barriers through the PRIM route: Sebi introduced the portfolio managers route for investing in mutual funds (PRIMs). While traditional equity PMS still requires a minimum ticket size of Rs 50 lakh, this new mutual fund-only PMS route halves the entry threshold to Rs 25 lakh, making personalised asset allocation and professional wealth management accessible to more NRIs.
Exemption from GIFT City: The new rules allow NRIs/PROIs to invest directly in domestic PMS schemes without the mandatory routing through GIFT City required earlier. This eliminates operational friction, additional account setups and administrative costs, making onboarding easier.
Much wider asset class: The overhaul expands the PMS investment universe, allowing fund managers handling NRI capital to invest across a wider range of assets, including IPOs and primary debt, as well as global assets such as overseas ETFs, global mutual funds and international equity and debt through discretionary PMS routes.
These changes also facilitate cross-border diversification. NRIs/PROIs can, through PMS managers, participate directly in domestic IPOs and primary-market corporate debt issuances, while also investing in global assets such as specified foreign securities, including overseas ETFs, global mutual funds and international equity/debt. This allows NRIs to pursue cross-border diversification within a single account.
Unlisted debt and better hedging: Managers can now allocate up to 10% of assets to investment-grade, unlisted debt securities with the client’s consent and use exchange-traded derivatives up to 1.25x of client AUM for risk hedging.
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