Rupee loans for NRI ESOP purchases allow banks to finance share acquisitions under specified regulatory conditions. Authorised Dealer Category I banks may grant rupee loans to NRI employees to acquire shares under ESOPs, subject to a board approved policy and conditions: loan capped at 90% of purchase price or Rupees 20 lakh per employee; bank determined interest and margin within regulatory directives; payment directly to the company; repayment by inward remittance or debit to NRO/NRE/FCNR(B) accounts; and inclusion of such loans in capital market exposure for compliance with prudential limits.
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.
Rupee loans for NRI ESOP purchases allow banks to finance share acquisitions under specified regulatory conditions.
Authorised Dealer Category I banks may grant rupee loans to NRI employees to acquire shares under ESOPs, subject to a board approved policy and conditions: loan capped at 90% of purchase price or Rupees 20 lakh per employee; bank determined interest and margin within regulatory directives; payment directly to the company; repayment by inward remittance or debit to NRO/NRE/FCNR(B) accounts; and inclusion of such loans in capital market exposure for compliance with prudential limits.
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