India Seeks Diaspora Capital as Foreign Funds Pull Out of Local Stocks

India is seeking to draw more money from its overseas nationals into local equities as global funds pull back amid concerns over corporate earnings and more attractive returns elsewhere.

The ceiling for persons resident outside India — Indians living abroad for business, education or professional reasons and classified as non-residents under the Foreign Exchange Management Act — has been doubled to 10% of a company’s paid-up capital, while the combined limit for all such investors has been lifted to 24% from 10%, Finance Minister Nirmala Sitharaman said Sunday while presenting the annual budget.