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Budget 2026: PIOs can now invest directly in PMS instead of routing via GIFT CityUnion Budget 2026-27 lets Persons of Indian Origin invest in PMS, raising individual limits to 10% and total cap to 24%, easing compliance.By Anshul  February 1, 2026, 11:55:56 AM IST (Updated)1 Min Read(Photo Credit : Canva)In the Union Budget 2026-27, Finance Minister announced a relaxation in rules governing investments by Persons of Indian Origin (PIOs), classified as Persons Resident Outside India (PROIs), allowing them to invest directly in Portfolio Management Services (PMS) in India instead of routing funds through GIFT City.

As part of the changes, the individual investment limit for PROIs in PMS has been increased from 5% to 10%, providing greater flexibility for overseas-based Indian investors to participate in domestic capital markets.

Additionally, the overall cap on investments by PROIs in PMS schemes has been raised sharply to 24% from the earlier limit of 10%, giving fund managers significantly more room to accept overseas capital from this category of investors.

The move is expected to simplify compliance, reduce transaction costs, and potentially boost foreign participation in India’s asset management industry, subject to market conditions and global investment sentiment.

This is a developing news

Catch LIVE updates on Budget hereContinue ReadingFirst Published: Feb 1, 2026 11:52 AM ISTTagsBudgetGIFT CityinvestmentsNirmala SitharamanPMS