Cross-border bonus issuance of non-convertible redeemable instruments requires approved restructuring and compliance with foreign investment conditions. Regulation 6 permits an Indian company, after approval of a Scheme of Arrangement for merger, demerger or amalgamation, to distribute non-convertible ... Summary
Cross-border bonus issuance of non-convertible redeemable instruments requires approved restructuring and compliance with foreign investment conditions.
Regulation 6 permits an Indian company, after approval of a Scheme of Arrangement for merger, demerger or amalgamation, to distribute non-convertible redeemable preference shares or non-convertible redeemable debentures as bonus from general reserves to shareholders resident outside India. The original foreign investment must comply with the applicable foreign investment framework, the issue must comply with the Companies Act, 2013 and Scheme conditions, and the company must not operate in a sector prohibited for foreign investment.
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