Foreign Investors Can Receive Bonus Shares in Restricted Sectors Without Changing Ownership Proportions Under New Regulatory Guidelines

Indian regulatory authorities issued a clarification permitting bonus share issuance by Indian companies in FDI-prohibited sectors to existing non-resident shareholders, contingent upon maintaining identical pre-existing shareholding proportions. The directive mandates strict compliance with applicable regulatory frameworks and becomes effective upon corresponding FEMA notification issuance. The policy amendment allows bonus share distribution without altering existing non-resident shareholding patterns, providing clarity for foreign investment structures in restricted sectoral domains. .....

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