Overseas ESOPs

[Darshan Jain]

I am a resident working in Google India. I have been issued Google Stock Units in under the Stock option program. Now, I want to sell the stocks in the US of say $100,000 and reinvest the money in other stocks. Whether I am required to repatriate the proceeds arising out of the sale of such securities as per Regulation 22 of the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2004 or is the transfer covered under the LRS, as provided in Q4 of FAQ's available at https://m.rbi.org.in/scripts/FAQView.aspx?Id=115#Q4 ?

AI Summary

Repatriation requirement for overseas ESOP proceeds versus liberalised remittance permissibility for reinvestment abroad. Whether a resident employee who sells overseas employee stock units must remit sale proceeds to India under the foreign securities transfer rules or may treat the sale and reinvestment as an outward remittance permitted under the Liberalised Remittance Scheme, with consequent compliance, reporting and documentation obligations under the applicable foreign exchange regime.