Overseas Investments by Resident Individuals – Liberalisation / Rationalisation.

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..... equity shares of a foreign entity by way of / under (i) qualification shares, (ii) professional services rendered and (iii) ESOP scheme. Further, the Committee to Review the Facilities for Individuals under the Foreign Exchange Management Act, 1999 (Chairperson Smt K J Udeshi) in its report submitted in August 2011 suggested that general permission may be made available to the resident individuals for acquiring equity shares of a foreign entity as above. Accordingly, it has been decided to grant general permission to resident individuals in respect of the following. 3. Acquiring qualification shares of an overseas company for holding the post of a Director In terms of Regulation 24(1)(a) of the Notification ibid , a person reside .....

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..... of Director s remuneration Presently, Regulation 20 of the Notification ibid prescribes that a Resident individual may apply to the Reserve Bank for permission to acquire shares in a foreign entity offered as consideration for professional services rendered to the foreign entity and the Reserve Bank may, after taking into account certain factors, grant permission subject to such terms and conditions as are considered necessary. It has been decided to grant General Permission to the resident individuals to acquire shares of a foreign entity in part / full consideration of professional services rendered to the foreign company or in lieu of Director s remuneration. The limit of acquiring such shares in terms of value shall be within t .....

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..... D Category I bank giving details of remittances / beneficiaries, etc. It has now been decided that resident employees or Directors may be permitted to accept shares offered under an ESOP Scheme globally, on uniform basis, in a foreign company irrespective of the percentage of the direct or indirect equity stake in the Indian company subject to: i. the shares under the ESOP Scheme are offered by the issuing company globally on a uniform basis, and ii. an Annual Return is submitted by the Indian company to the Reserve Bank through the AD Category I bank giving details of remittances / beneficiaries, etc. 6. Necessary amendments to the Foreign Exchange Management (Transfer or Issue of Any Foreign Security), Regulations, 200 .....

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