Rights and bonus issues permit eligible non-resident investment subject to sectoral caps, pricing safeguards, lawful shareholding, and non-repatriation conditions. Foreign investment in equity instruments, other than share warrants, through rights or bonus issues is permitted for existing non-resident investors, ... Summary
Rights and bonus issues permit eligible non-resident investment subject to sectoral caps, pricing safeguards, lawful shareholding, and non-repatriation conditions.
Foreign investment in equity instruments, other than share warrants, through rights or bonus issues is permitted for existing non-resident investors, subject to company law compliance, sectoral caps, lawful underlying shareholding, applicable issue conditions, and prescribed payment requirements. Listed-company rights issues may be priced by the company, whereas unlisted-company issues cannot be priced below offers made to resident investors. Individuals exercising rights issued during Indian residence must hold resulting instruments on a non-repatriation basis. Bonus shares may be issued in prohibited foreign investment sectors if non-resident shareholders' shareholding pattern remains unchanged.
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