ESOP to Foreign Origin

This query is : Resolved

Tushar (Querist)
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24 November 2009
Can the Indian Listed co(not issued any ADR or GDR) issue ESOP to Foreign Origin employee (not NRI or NRO)? The employee will be based out of foreign located branch. If yes,pls share the details along with relevant guidelines...

Thanks in advace

Juzer Sadikot

Juzer Sadikot (Expert)
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24 November 2009 Yes, subject to following;

The scheme for ESOP must be as per SEBI Regulations/guidelines.

face value of the shares to be allotted under the scheme to the non-resident employees does not exceed 5 per cent of the paid-up capital of the issuing company

and

The issuing company shall furnish to the Reserve Bank, within thirty days from the date of issue of shares under the scheme, a report giving the following particulars/documents,â€”

(i) names of persons to whom shares are issued under the scheme and number of shares issued to each of them;

(ii) a certificate from the Company Secretary of the issuing company that the value of shares issued under the scheme does not exceed 5 per cent of the paid-up capital of the issuing company and that the shares are issued in compliance with the regulations issued by the SEBI in this behalf.

Regards
Juzer