Bonus share issuance to non-resident shareholders allowed despite FDI prohibition, subject to unchanged shareholding pattern. An amendment permits Indian companies in sectors closed to foreign direct investment to issue bonus shares to pre-existing non-resident shareholders provided such issuance does not change those shareholders' proportionate shareholding; bonus shares issued before commencement are deemed to have been issued in conformity with the then-applicable foreign exchange regulations.
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Provisions expressly mentioned in the judgment/order text.
Bonus share issuance to non-resident shareholders allowed despite FDI prohibition, subject to unchanged shareholding pattern.
An amendment permits Indian companies in sectors closed to foreign direct investment to issue bonus shares to pre-existing non-resident shareholders provided such issuance does not change those shareholders' proportionate shareholding; bonus shares issued before commencement are deemed to have been issued in conformity with the then-applicable foreign exchange regulations.
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