Rights and bonus shares to non-resident investors can look like routine company-law actions, but FEMA conditions still matter: sectoral caps, eligibility, pricing and reporting trail need review.
| Issue type | Review point |
|---|---|
| Rights issue | Eligibility, pricing and shareholder participation. |
| Bonus issue | Capitalisation source and non-resident shareholder record. |
| Renunciation | Check resident/non-resident transfer implications. |
| Sector cap | Ensure post-issue foreign holding remains compliant. |
| Reporting trail | Preserve corporate approvals and filings. |
This article is intentionally source-limited to official RBI / India Code material. Verify final filing positions with the latest FEMA Act, regulations, RBI directions, bank instructions and portal advisories before publishing.
RBI foreign investment guidance includes conditions for issue to existing non-resident shareholders.
Post-issue foreign holding must remain compliant.
Yes. It can create resident/non-resident transfer implications.