New Delhi, June 13 -- The Finance Ministry has modified foreign direct investment regulations to permit Indian companies operating in sectors where FDI is prohibited to issue bonus shares to existing non-resident shareholders.

The amendment was announced through the Foreign Exchange Management (Non-debt Instruments) (Amendment) Rules, 2025, which became effective June 11.

Under the new framework, companies can distribute bonus shares to their current non-resident investors, provided the shareholders' ownership percentages remain constant following the issuance.

The ministry emphasised that the proportional stakes of such shareholders must not change despite the bonus share allocation.

Industry experts view the regulatory change as pro...