Employee share-based benefits for non-residents require sectoral-cap compliance, prescribed approvals, and non-repatriation holding for certain exercised options. Indian companies may issue employees' stock options, sweat equity shares and share-based employee benefits to specified non-resident employees and ... Summary
Employee share-based benefits for non-residents require sectoral-cap compliance, prescribed approvals, and non-repatriation holding for certain exercised options.
Indian companies may issue employees' stock options, sweat equity shares and share-based employee benefits to specified non-resident employees and directors under schemes compliant with applicable securities, company-law or other legal requirements. Issuances must comply with the applicable sectoral cap. Prior government approval is required where foreign investment is under the approval route and for issuance to citizens of Bangladesh or Pakistan. Options issued while an individual was resident in India, if exercised after becoming non-resident, result in shares held on a non-repatriation basis.
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