Authorised Dealer rupee loans for ESOP purchases allowed with caps and prudential oversight, repayment via specified non-resident accounts. The Reserve Bank permits Authorised Dealers to grant Rupee loans to NRI employees for purchase of shares under ESOP schemes, subject to conditions: board approved ESOP policy; loan capped by a per employee ceiling or percentage of purchase price; bank determined interest and margins within RBI 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 exposures 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.
Authorised Dealer rupee loans for ESOP purchases allowed with caps and prudential oversight, repayment via specified non-resident accounts.
The Reserve Bank permits Authorised Dealers to grant Rupee loans to NRI employees for purchase of shares under ESOP schemes, subject to conditions: board approved ESOP policy; loan capped by a per employee ceiling or percentage of purchase price; bank determined interest and margins within RBI 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 exposures for compliance with prudential limits.
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