Budget 2026: PIOs Can Now Directly Invest in PMS, Bypassing GIFT City

• Union Budget 2026-27 allows Persons of Indian Origin (PIOs) to invest directly in Portfolio Management Services (PMS) in India.
• This change eliminates the previous requirement of routing investments through GIFT City for PIOs (classified as PROIs).
• The individual investment limit for PROIs in PMS has doubled from 5% to 10%.
• The overall cap for PROI investments in PMS schemes has significantly increased from 10% to 24%.
• These measures aim to simplify compliance, reduce costs, and boost foreign participation in India's asset management industry.

Why It Matters: PIOs can now directly invest in Indian PMS with increased limits, simplifying foreign capital participation.