Taxmann Professionals
#TaxmannPractice As per Regulation 7(1) of the Foreign Exchange Management (Non-debt Instruments) Rules 2019, a person resident outside India who has acquired and continues to hold equity instruments of an Indian company may invest in a rights issue or a…
‣ 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐍𝐨𝐫𝐦𝐬 – The offer made to non-resident shareholders must be at a price not less than that offered to resident shareholders.
‣ 𝐍𝐨 𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭 𝐀𝐥𝐥𝐨𝐰𝐞𝐝 – Differential pricing between resident and non-resident shareholders is not permitted. The offer must be made on identical terms and at the same price to all shareholders
For Detailed Guidelines on Non-debt Instruments, Visit: https://taxmann.social/Vfvu1
𝑇ℎ𝑖𝑠 𝑐𝑜𝑛𝑡𝑒𝑛𝑡 𝑖𝑠 𝑏𝑟𝑜𝑢𝑔ℎ𝑡 𝑡𝑜 𝑦𝑜𝑢 𝑏𝑦 𝑇𝑎𝑥𝑚𝑎𝑛𝑛.𝑐𝑜𝑚 | 𝑃𝑟𝑎𝑐𝑡𝑖𝑐𝑒
#TaxmannUpdates #FEMA #FDI #NonDebtInstruments
‣ 𝐍𝐨 𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭 𝐀𝐥𝐥𝐨𝐰𝐞𝐝 – Differential pricing between resident and non-resident shareholders is not permitted. The offer must be made on identical terms and at the same price to all shareholders
For Detailed Guidelines on Non-debt Instruments, Visit: https://taxmann.social/Vfvu1
𝑇ℎ𝑖𝑠 𝑐𝑜𝑛𝑡𝑒𝑛𝑡 𝑖𝑠 𝑏𝑟𝑜𝑢𝑔ℎ𝑡 𝑡𝑜 𝑦𝑜𝑢 𝑏𝑦 𝑇𝑎𝑥𝑚𝑎𝑛𝑛.𝑐𝑜𝑚 | 𝑃𝑟𝑎𝑐𝑡𝑖𝑐𝑒
#TaxmannUpdates #FEMA #FDI #NonDebtInstruments
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Can an Indian Company issue right shares to a non-resident shareholder at a discount?
ABC Ltd., an Indian unlisted company, proposes to issue rights shares to its existing shareholders. The company plans to offer these rights shares at a price of Rs.100 per share to resident shareholders and at a lower price of Rs. 80 per share to persons…