9911796707
TMI BlogIssue of shares under Employees Stock Options Scheme and/or sweat equity shares to persons resident outside IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... m time to time. 2. In terms of the extant instructions, an Indian company can issue shares under Employees Stock Option (ESOP) Scheme, by whatever name called, to its employees or employees of its Joint venture or Wholly owned overseas subsidiary/subsidiaries who are resident outside India, directly or through a Trust, provided that the scheme has been drawn in terms of regulations issued under the SEBI Act, 1992 and face value of the shares to be allotted under the scheme to non-resident employees does not exceed 5 per cent of the paid up capital of the issuing company. The Trust or Indian company has to ensure compliance with the above conditions and comply with the reporting requirement. 3. On a review, it has been decided that an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equity shares, a return as per the Form-ESOP (given as Annex to this circular). 5. Authorised Dealer banks may bring the contents of this circular to the notice of their constituents /customers concerned. 6. Reserve Bank has since amended the Principal Regulations through the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2015 notified through Notification No. FEMA.344/2015-RB dated June 11, 2015, vide G.S.R. No. 484 (E) dated June 11, 2015. 7. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) Description of the main business activity b) NIC Code c) Percentage of FDI allowed as per FDI policy d) State whether FDI is allowed under Automatic Route or Approval route e) FIPB approval, if any II. Type of security issued (Tick mark whichever is applicable) 1. Sweat equity shares ( ) 2. Stock Option Scheme ( ) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Activities(Prevention) Act, 1967 (UAPA). We confirm that the investment complies with the provisions of all applicable Rules and Regulations. 5. We enclose the following documents in compliance with Regulation 8 of Notification No. FEMA 20/2000-RB dated May 3, 2000: (i) A certificate from our Company Secretary certifying that Sweat equity shares have been issued / the Employees Stock Option Scheme has been drawn either in terms of regulations issued under the Securities Exchange Board of India Act, 1992 or the Companies (Share Capital and Debentures) Rules, 2014 notified by the Central Government under the Companies Act, 2013 , as the case may be all the requirements of the Companies Act, 2013 have been complied w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, 2014 notified by the Central Government under the Companies Act, 2013 , as the case may be all the requirements of the Companies Act, 2013 have been complied with; terms and conditions of the Government approval, if any, have been complied with; the company is eligible to issue shares under these Regulations; and the company has all original certificates issued by authorised dealers in India evidencing receipt of amount of consideration in accordance with paragraph 8 of Schedule 1 to Notification No. FEMA 20/2000-RB dated May 3, 2000. (Name Signature of the Company Secretary) (Seal) FOR USE OF THE RESERVE BANK ONLY: - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management ..... X X X X Extracts X X X X X X X X Extracts X X X X
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