Can a foreign investor invest in Rights shares issued by an Indian company at a discount?
Ans. There are no restrictions under FEMA for investment in Rights shares issued at a discount by an Indian company, provided the rights shares so issued are being offered at the same price to residents and non-residents. The offer on right basis to the persons resident outside India shall be : (a) in the case of shares of a company listed on a recognized stock exchange in India, at a price as determined by the company; and (b) in the case of shares of a company not listed on a recognized stock exchange in India, at a price which is not less than the price at which the offer on right basis is made to resident shareholders. II.
