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Government tightens rights issue pricing norms for non-resident Indians

Experts said the notification provides much-needed clarity on the "acquisition after renunciation of rights" by NRIs

money, currency, rupee, dollar, currency market
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The rules will help curb market manipulation and money laundering, which could take place during the transfer of shares between residents and NRIs

Shrimi Choudhary New Delhi
The government has tightened the rights issue pricing norms for non-resident Indians (NRIs) by disallowing acquisition of renounced shares below the fair market value.

In a notification issued under the Foreign Exchange Management Act (Fema) regulations, the Centre said: “A person resident outside India who has acquired a right from a person resident in India who has renounced it may acquire equity instruments (other than share warrants) against the said rights as per pricing guidelines.”

Experts said the notification provides much-needed clarity on the “acquisition after renunciation of rights” by NRIs. They said the rules will help curb market manipulation and money

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