Issue of Non convertible/ redeemable bonus preference shares or debentures - Clarifications

The Reserve Bank of India (RBI) has said that an Indian company may issue non-convertible/ redeemable preference shares or debentures to non-resident shareholders, including the depositories that act as trustees for the ADR/GDR holders, by way of distribution as bonus from its general reserves under a Scheme of Arrangement approved by a Court in India under the provisions of the Companies Act, as applicable, subject to no-objection from the Income Tax Authorities.