FDI Rules eased: Foreign Investors can be given Bonus Shares in Restricted Sectors
12 June 2025Saloni Kumari
FDI Rules eased: Foreign Investors can be given Bonus Shares in Restricted Sectors
The Ministry of Finance issued an official notification dated June 11, 2025, regarding the key amendment introduced to an existing Foreign Exchange Management (Non-debt Instruments) Rules, 2019, by the Central Government of India in its exercise of powers described under clauses (aa) and (ab) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999). This change is technical but useful for companies that are not allowed to take new FDI but already have some foreign investors; they can now reward them with bonus shares without legal confusion.