# The FEMA Non-Debt Rules Changed in June 2026: Here Is What It Does Not Touch **On 12 June 2026 the government gazetted the Foreign Exchange Management (Non-Debt Instruments) Third Amendment Rules, 2026, and RBI followed with a mode-of-payment amendment the next day. The headlines read "FEMA rules amended for NRIs." Before you worry about your flat: this is a stock-market investment reform. It does not change how you buy, hold, sell, or repatriate India property.** A FEMA amendment lands and every NRI group chat asks the same question: does this hit my property? For this one, no. Here is the clean split between what changed and what did not. ## What actually changed Two linked notifications did the work. - The FEMA (Non-Debt Instruments) Third Amendment Rules, 2026, notified on 12 June 2026, rewrote Rule 9 to replace "Non-Resident Indian or OCI" with "an individual resident outside India." The route to buy listed Indian equity, once reserved for NRIs and OCIs, now opens to all overseas individuals, subject to conditions. Schedule III keeps the per-person cap below 10% of a company and an aggregate cap of 24%. The rules also tighten prior-approval requirements where ownership would pass to citizens or entities of countries that share a land border with India. - RBI's companion notification, FEMA 395(4)/2026-RB dated 13 June 2026, set the plumbing. An NRI or OCI investing under this route must now designate one repatriable rupee account used only for these Schedule III investments. It also lets NPS subscriptions be funded from an NRO account, not only from repatriable money, and gives more choice over where sale proceeds are credited. This is the operative gazette behind RBI's 5 June 2026 announcement, when the central bank said it would double the single-investor equity ceiling from 5% to 10% and the aggregate from 10% to 24%. That change is now law, and it now reaches a wider set of investors than NRIs alone. ## What it does not change for a property owner Say it plainly: none of this touches immovable property. - Buying property: an NRI still buys residential and commercial property in India without RBI approval, and still cannot buy agricultural land, farmhouses, or plantations. Unchanged. - Repatriating a sale: the USD 1 million per financial year cap on NRO repatriation stands. The route to send out sale proceeds of up to two residential properties bought with inward remittance stands. Unchanged. - The certificates and declarations for remitting money out of India are set by tax rules, not by this FEMA amendment. This notification does not alter them. The "designated repatriable rupee account" in the new rules is for market investments under Schedule III. It is not your property rent account and not your sale-proceeds account. Do not merge the two. ## What to do We report the change here. We do not manage your equity portfolio or your FEMA filings. If you are buying, the FEMA position for an NRI property purchase is in [NRI buying property in India](/guides/nri-buying-property-in-india). If you are selling and sending the money out, the account and limit mechanics are in [repatriating property sale proceeds from an NRO account](/guides/repatriating-property-sale-proceeds-nro), and the tax certificates are in [the Form 15CA and 15CB guide](/guides/form-15ca-15cb-guide). ## FAQ **Did the June 2026 FEMA amendment change NRI property rules?** No. It widened who can invest in listed Indian equity and reset the mode of payment for those investments. Property purchase, holding, sale, and the USD 1 million NRO repatriation limit are unchanged. **What is the new designated repatriable rupee account for?** For Schedule III market investments by NRIs and OCIs, such as listed equity. RBI now requires one such account used only for those investments. It is separate from the accounts you use for rent or property sale proceeds. **Can non-NRI foreigners now invest in Indian listed shares?** Yes, within limits. The amendment replaced "NRI or OCI" with "an individual resident outside India," so the route opens to all overseas individuals, subject to the per-person and aggregate caps and other conditions. ## Own property in India and unsure what a rule change touches? 66 MG Road keeps NRI owners clear on which India rules affect their flat and which do not, so you act on facts, not headlines. We operate in Mumbai, Pune, Bangalore, Hyderabad, Chennai, and Gurgaon. See [repatriating property sale proceeds](/guides/repatriating-property-sale-proceeds-nro) or [request a proposal](/proposal). *66 MG Road newsdesk* ## Sources - SCC Online, FEMA (Non-Debt Instruments) Third Amendment Rules, 2026 Explained: [https://www.scconline.com/blog/post/2026/06/16/fema-non-debt-instruments-third-amendment-rules-2026-explained/](https://www.scconline.com/blog/post/2026/06/16/fema-non-debt-instruments-third-amendment-rules-2026-explained/) - CorpLawUpdates, FEMA 395(4)/2026-RB: NRI/OCI Investment Payment Rules Amended: [https://www.corplawupdates.in/updates/fema-395-4-2026-rb-nri-oci-mode-payment-non-debt-instruments-amendment](https://www.corplawupdates.in/updates/fema-395-4-2026-rb-nri-oci-mode-payment-non-debt-instruments-amendment) - India Briefing, New FEMA Non-Debt Rules: Impact on Individual Foreign Investors: [https://www.india-briefing.com/news/fema-non-debt-amendment-foreign-individuals-45618.html/](https://www.india-briefing.com/news/fema-non-debt-amendment-foreign-individuals-45618.html/) - LiveLawBiz, Centre Expands Listed Indian Companies Investment Route Beyond NRIs/OCIs Under FEMA Rules: [https://www.livelawbiz.com/amp/fema/centre-expands-listed-indian-companies-investment-route-beyond-nris-ocis-under-fema-rules-537972](https://www.livelawbiz.com/amp/fema/centre-expands-listed-indian-companies-investment-route-beyond-nris-ocis-under-fema-rules-537972) ## Compare and cost - [The NRI Property Management Companies in India: A Comparison You Can Check](/guides/best-nri-property-management-companies-india) - [What NRI Property Management Costs in India: The Four Models and What Hides in Each](/guides/nri-property-management-cost-india) - [NoBroker NRI Services Review: What the Pages Promise and What They Leave Out](/guides/nobroker-nri-services-review) --- Source: [https://66mgroad.com/guides/fema-non-debt-rules-amendment-nri-jul-2026](https://66mgroad.com/guides/fema-non-debt-rules-amendment-nri-jul-2026) ยท 66 MG Road. Full LLM brief: https://66mgroad.com/llms.txt