Why is Non-PINS required?
RBI under FEMA guideline, primarily ensures that the overall upper limit of foreign investments in any company is not breached. Therefore it is essentially interested in monitoring all the fresh investments done by NRI/PIOs in any Indian company. Under IPO, it is the responsibility of the company to inform RBI of the shares it is allotting to NRIs, therefore these shares are not covered under PINS. Shares bought as resident Indian, do not confer the ownership right to any NRI as a foreign body, therefore these shares are also not covered under PINS. While declaring bonus, it is like a fresh issue of shares at zero cost, therefore the responsibility is of the company to inform RBI about the shares it is providing to NRIs. Also since bonus is provided to all, overall percentage holding remains the same. While investing in MF, the voting right or the ownership of the shares remains with the AMC/trust and not the individual investing in the MF. Therefore, here also reporting is not require
