Cross-border equity issuance in company mergers permitted subject to entry routes, sectoral caps and prohibited-sector compliance. Rule 19 allows a transferee or new Indian company to issue equity instruments to non-resident shareholders of a transferor company following approval of a merger, demerger, reconstruction or similar scheme, subject to compliance with entry routes, sectoral caps and investment limits; potential breaches of sectoral caps require government approval; issuance is prohibited for companies operating in sectors closed to foreign investment; transactions involving listed companies must comply with listing obligation and disclosure requirements.
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.
Cross-border equity issuance in company mergers permitted subject to entry routes, sectoral caps and prohibited-sector compliance.
Rule 19 allows a transferee or new Indian company to issue equity instruments to non-resident shareholders of a transferor company following approval of a merger, demerger, reconstruction or similar scheme, subject to compliance with entry routes, sectoral caps and investment limits; potential breaches of sectoral caps require government approval; issuance is prohibited for companies operating in sectors closed to foreign investment; transactions involving listed companies must comply with listing obligation and disclosure requirements.
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