Rupee Loans to NRI Employees of Indian Companies under Employees Stock Option (ESOP) Scheme

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n (ESOP) Scheme 1. As you are aware, banks are allowed to extend loans in Rupees to resident employees of an Indian company to purchase shares of the company under Employees Stock Option (ESOP) Scheme, to the extent of 90 per cent of the purchase price of the shares or Rupees 20 lakh, whichever is lower. Rupee loans extended by banks under ESOP Scheme is treated as bank's exposure to capital m .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r the ESOP Scheme. The loan scheme should be as per the policy approved by the bank's Board and would further be subject to the following conditions : (i) The loan amount should not exceed 90 per cent of the purchase price of the shares or Rupees 20 lakhs per NRI employee, whichever is lower. (ii) The rate of interest and margin on such loans may be decided by the banks, subject to the directi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ts and customers concerned. 6. The directions contained in this circular have been issued under Sections10 (4) and 11(1) of the Foreign Exchange Management Act,1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law. RBI/2007-2008/118 (Salim Gangadharan) Chief General Manager - Circular - Trade Notice - Public Notice - Instructions .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X