Amended Rule 7 Allows Bonus Shares for Non-Resident Shareholders in Restricted Sectors Without Changing Ownership Structure

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The MoF issued an amendment to Foreign Exchange Management (Non-debt Instruments) Rules, 2025, modifying rule 7. The amendment permits Indian companies operating in sectors prohibited for foreign direct investment to issue bonus shares to existing non-resident shareholders, provided the shareholding pattern remains unchanged. Bonus shares issued prior to the amendment's commencement are deemed compliant with existing foreign exchange regulations. The amendment aims to clarify and streamline bonus share issuance procedures for companies with foreign shareholding in restricted sectors, ensuring regulatory consistency and transparency in foreign investment frameworks.....