Rights and bonus issue investment conditions restrict pricing, sector caps and remittance routes for non-resident investors. Non-resident investment via rights or bonus issues is allowed if the issuer complies with the Companies Act, the issue does not breach the sectoral cap, and the underlying shareholding was acquired under these Regulations. Pricing: listed companies may determine price to non-residents; unlisted companies must not price below the resident offer. Consideration must be paid by inward remittance or from NRE/FCNR(B) accounts; original non-repatriable investments may use NRO debits. Individuals who changed residence must hold shares on a non-repatriation basis when exercising previously issued rights. These conditions apply to renounced rights as well.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Rights and bonus issue investment conditions restrict pricing, sector caps and remittance routes for non-resident investors.
Non-resident investment via rights or bonus issues is allowed if the issuer complies with the Companies Act, the issue does not breach the sectoral cap, and the underlying shareholding was acquired under these Regulations. Pricing: listed companies may determine price to non-residents; unlisted companies must not price below the resident offer. Consideration must be paid by inward remittance or from NRE/FCNR(B) accounts; original non-repatriable investments may use NRO debits. Individuals who changed residence must hold shares on a non-repatriation basis when exercising previously issued rights. These conditions apply to renounced rights as well.
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