Are foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) allowed to invest in Indian companies? Ans: Yes, they are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India. Q2). What are the maximum overall investments one FII, NRI or PIO?

By Meera Kapoor · November 27, 2025

Ans: The upper limit for overall investment
for FIIs is 24%, of the paid up capital of the Indian company,
and 10% for NRIs and PIOs. The limit is 20% of the paid up capital
in case of public sector banks, including the State Bank of
India.

Q3). Can the upper limit of the investments be raised
under any special cases for FII, NRI or PIO?

Ans: Yes, the upper limit of 24% for FII investment
can be raised up to sectoral cap/statutory ceiling, subject
to the approval of the board and the general body of the company
passing a special resolution to that effect. And the maximum
limit of 10 % can be raised to 24% subject to the approval of
the general body of the company passing a resolution, to that
effect.

Q4). Is the ceiling for FIIs dependent of the ceiling
of 10/24 per cent for NRIs/PIOs?