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      Question

      According to the DPIIT clarification, companies in

      FDI-prohibited sectors may issue bonus shares to NRIs under which key condition?
      A Investment must exceed 25% Correct Answer Incorrect Answer
      B Shareholding pattern remains unchanged Correct Answer Incorrect Answer
      C Requires RBI pre-approval Correct Answer Incorrect Answer
      D Limited to agriculture and retail Correct Answer Incorrect Answer
      E Shares must be redeemed within 3 years Correct Answer Incorrect Answer

      Solution

      Indian companies in FDI-prohibited sectors can issue bonus shares to existing NRIs only if the shareholding pattern remains unchanged after issuance.

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