https://www.taxtmi.com/highlights?id=105875 Non-resident rights subscriptions require existing shares to have been acquired and held in accordance with the applicable foreign exchange regulations. Failure to meet the RBI permission requirement for the original acquisition renders a subsequent rights subscription non-compliant, even if no penalty was imposed for the acquisition. In FEMA adjudication, a recorded opinion for proceeding with an inquiry must be supplied on request where objections to the show-cause notice were submitted; without objections, there is no such mandate. Penalty proportionality may be assessed in light of transactions through banking channels, absence of concealment and inaction over the original acquisition. A penalty equal to the amount involved was reduced to 25% of that amount. en-us Fri, 06 Nov 2026 09:28:20 +0530 Fri, 06 Nov 2026 09:28:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=105875 Non-resident rights subscriptions require existing shares to have been acquired and held in accordance with the applicable foreign exchange regulations. Failure to meet the RBI permission requirement for the original acquisition renders a subsequent rights subscription non-compliant, even if no penalty was imposed for the acquisition. In FEMA adjudication, a recorded opinion for proceeding with an inquiry must be supplied on request where objections to the show-cause notice were submitted; without objections, there is no such mandate. Penalty proportionality may be assessed in light of transactions through banking channels, absence of concealment and inaction over the original acquisition. A penalty equal to the amount involved was reduced to 25% of that amount. Highlights FEMA Fri, 06 Nov 2026 09:28:20 +0530 https://www.taxtmi.com/highlights?id=105875