Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2026.

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....t) Rules, 2026.    (2) They shall come into force on the date^# of their publication in the Official Gazette. 2. In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (hereinafter referred to as the principal rules) in rule 9, in sub-rule (1), for the words "a non-resident Indian or an overseas citizen of India", the words "an individual" shall be substituted; 3. In the principal rules, in chapter V, - (i) for the heading "INVESTMENT BY NON-RESIDENT INDIAN OR AN OVERSEAS CITIZEN OF INDIA", the following heading shall be substituted, namely - INVESTMENT BY AN INDIVIDUAL PERSON RESIDENT OUTSIDE INDIA INCLUDING A NONRESIDENT INDIAN OR AN OVERSEAS CITIZEN OF INDIA (ii) in rule 12, fo....

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....id Act; " (iv) in rule 13, - (a) for the sub-heading "Transfer of equity instruments by NRI or OCI", the sub-heading "Transfer of equity instruments by an individual person resident outside India including a NRI or an OCI" shall be substituted; (b) for the opening portion beginning with words "An NRI or an OCI holding equity instruments" and ending with words "prescribed hereunder", the following shall be substituted, namely - "An individual person resident outside India holding equity instruments of an Indian company or units in accordance with these rules may transfer such equity instruments or units so held by him in compliance with the conditions, if any, specified in the Schedules of these rules and subject t....

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....(1), in sub-para (a) in clause (i), for the proviso, the following proviso shall be substituted, namely: - "Provided that total holding of a foreign portfolio investor under schedule II, III or any other schedule of these rules, including through an investor group under this schedule, in a listed Indian company, shall be less than the above prescribed individual limit and in case of investment of ten per cent or more, the provisions of clause (iii) of sub-paragraph (a) of paragraph 1 of this schedule shall apply. Explanation: For the purposes of this schedule, the expression "investor group" shall have the same meaning as assigned to it under the Securities and Exchange Board of India (Foreign Portfolio Investors) Reg....

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....t exceed twenty four per cent of the paid-up value of each series of debentures or preference shares or share warrants: Provided that total holding of an individual person resident outside India in a listed Indian company under schedule II, III or any other schedule of these rules, shall be less than the above prescribed individual limit of less than ten per cent and in case of investment of ten per cent or more, the provisions of clause (c) of sub-paragraph (a) of paragraph 1 of this schedule shall apply; (c) Investment made by an individual person resident outside India under these rules in breach of the prescribed limit of less than ten per cent shall be required to be divested within five trading days from the date of ....