Rule 7 - Rights issue and bonus shares - Foreign Exchange Management (Overseas Investment) Rules, 2022

7. Rights issue and bonus shares . (1) Any person resident in India who has acquired and continues to hold equity capital of any foreign entity in accordance with the provisions of the Act or the rules or regulations made thereunder (a) may invest in the equity capital issued by such entity as a rights issue; or (b) may be granted bonus shares subject to the terms and conditions under these rules. (2) The person resident in India acquiring the rights under sub-rule (1) may renounce such rights in favour of a person resident in India or a person resident outside India.