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REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-11062025-263729
EXTRAORDINARY
PART II-Section 3-Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 2487]
NEW DELHI, WEDNESDAY, JUNE 11, 2025/JYAISTHA 21, 1947
MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 11th June, 2025
S.O. 2549(E).— In exercise of the powers conferred by clauses (aa) and (ab) of sub-section (2) of section 46
of the Foreign Exchange Management Act, 1999 (42 of 1999), the Central Government hereby makes the following
rules further to amend the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, namely:—
1. (1) These rules may be called the Foreign Exchange Management (Non-debt Instruments) (Amendment)
Rules, 2025.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, rule 7 shall be renumbered as 7(1)
thereof and after clause (h) of sub-rule (1) as so renumbered, the following sub-rule shall be inserted, namely:—
"(2) An Indian company, engaged in a sector or activity prohibited for foreign direct investment, may issue
bonus shares to its pre-existing shareholders who are persons resident outside India, provided that the shareholding
pattern of such shareholders is not changed pursuant to the issuance of bonus shares and any bonus shares issued
to such shareholders prior to the date of commencement of this sub-rule shall be deemed to have been issued in
accordance with the provisions of these rules or the Foreign Exchange Management (Transfer or issue of Security
by a Person Resident outside India) Regulations, 2000 or the Foreign Exchange Management (Transfer or Issue
of Security by a Person Resident Outside India) Regulations, 2017, as the case may be.".
[F. No. 1/9/2024-EM]
REETU JAIN, Economic Adviser
Note: The Foreign Exchange Management (Non-debt Instruments) Rules, 2019 were published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (ii) vide number S.O.3732 (E), dated the 17th October, 2019 and
subsequently amended vide the following notification numbers:
(i) S.O. 4355 (E), dated the 5th December 2019;
(ii) S.O. 1278 (E), dated the 22nd April, 2020;
(iii) S.O. 1374 (E), dated the 27th April, 2020;
(iv) S.O. 2442 (E), dated the 27th July, 2020;
(v) S.O. 4441 (E), dated the 8th December, 2020;
(vi) S.O. 3206 (E), dated the 9th August, 2021;
(vii) S.O. 3411 (E), dated the 19th August, 2021;
(viii) S.O. 4091 (E), dated the 5th October 2021;
(ix) S.O. 4242 (E), dated the 12th October 2021;
(x) S.O. 1802 (E), dated 12th April 2022;
(xi) S.O. 332 (E), dated 24th January 2024;
(xii) S.O. 1361 (E), dated 14th March 2024;
(xiii) S.O. 1722 (E), dated 16th April 2024; and
(xiv) S.O. 3492 (E), dated 16th August 2024.
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