Acquisition through rights or bonus issue: non-residents may subscribe to equity subject to sectoral caps, pricing and RBI payment conditions. Non-residents may acquire equity instruments via rights or bonus issues provided the issuing company complies with the Companies Act, the issuance does not breach the applicable sectoral cap, and the underlying shares were acquired in accordance with the Rules. Pricing differs by listing status: listed companies set the price for non-residents, while unlisted companies must not offer a lower price to non-residents than to residents. Investments remain subject to conditions at the time of issue and to payment procedures prescribed by the Reserve Bank; rights issued when resident in India and later exercised after becoming non-resident are to be held on a non-repatriation basis.
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.
Acquisition through rights or bonus issue: non-residents may subscribe to equity subject to sectoral caps, pricing and RBI payment conditions.
Non-residents may acquire equity instruments via rights or bonus issues provided the issuing company complies with the Companies Act, the issuance does not breach the applicable sectoral cap, and the underlying shares were acquired in accordance with the Rules. Pricing differs by listing status: listed companies set the price for non-residents, while unlisted companies must not offer a lower price to non-residents than to residents. Investments remain subject to conditions at the time of issue and to payment procedures prescribed by the Reserve Bank; rights issued when resident in India and later exercised after becoming non-resident are to be held on a non-repatriation basis.
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