New Delhi, June 9 -- An NRI who wants to buy shares of an Indian company can do so without much difficulty today. The challenge arises when the investment becomes large.

Under current rules, Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and certain other overseas investors can buy listed Indian shares without registering as Foreign Portfolio Investors (FPIs) with SEBI, but only up to prescribed limits. Beyond those thresholds, investors may have to use the FPI route, which comes with additional registration, reporting and compliance requirements.

The Reserve Bank of India (RBI) now wants to raise those limits.

As part of its latest policy measures, the central bank announced that NRIs and OCIs will be allowed to invest...