Overseas direct investment liberalisation: ESOP acquisitions allowed without prior central bank permission for majority indirect holdings. A consolidated amendment Notification (FEMA.120/2004 RB) integrates prior liberalisations to the foreign security regulations. Under the ESOP provision, a resident employee or director may buy equity of a foreign company offering shares where the Indian company has foreign equity of not less than 51 per cent, and where the foreign company holds indirectly through an SPV or step down subsidiary, no prior Reserve Bank permission is required if such indirect holding is not less than 51 per cent.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Overseas direct investment liberalisation: ESOP acquisitions allowed without prior central bank permission for majority indirect holdings.
A consolidated amendment Notification (FEMA.120/2004 RB) integrates prior liberalisations to the foreign security regulations. Under the ESOP provision, a resident employee or director may buy equity of a foreign company offering shares where the Indian company has foreign equity of not less than 51 per cent, and where the foreign company holds indirectly through an SPV or step down subsidiary, no prior Reserve Bank permission is required if such indirect holding is not less than 51 per cent.
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