Acquisition of Foreign Securities by Resident Individuals-ADR/GDR Linked Employees Stock Option (ESOP) Schemes

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.... resident employees (including working directors) to purchase foreign securities under the ADR/GDR linked Employees' Stock Option (ESOP) Schemes, provided that the consideration for purchase does not exceed USD 50,000 or its equivalent in a block of five calendar years. The coverage of the facility to acquire such ESOP was expanded later to include employees of all companies in the knowledge based sectors vide Guidelines dated September 15, 2000 (Annex-I) issued by the Ministry of Finance, Government of India. 2. It has now been decided by the Government that the issue of ESOP by a listed company in the knowledge-based sectors falling within the purview of the aforesaid Guidelines dated September 15, 2000, will be governed by SEBI (Employe....

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....IRS (INVESTMENT DIVISION) New Delhi, dated the 15th September, 2000 Liberalisation in the Guidelines for Issue of ADR/GDR linked Employees Stock Options by the Indian Companies Guidelines by way of a Press Note were issued on 23rd June, 1998 containing operational parameters and modalities for issue of ADR/GDR linked stock options to its employees by the Indian Software Companies. Revisions/modifications to expand the scope of application to the Indian companies engaged in Information Technology Software and Information Technology Services had been issued on 16th September 1998. These Guidelines were further modified by the Government on the 16th June 2000, expanding the coverage of employees who would be entitled to the ESOPs in line wi....

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....echnology (as defined in the recommendation No.19 (a) and (b) of Gazette Notification dated 25.07.1999 issued by the Planning Commission) & Entertainment software. ii. Pharmaceuticals; iii. Biotechnology; iv. Any other activities within the knowledge based sector as v. notified by the Government from time to time. (II) The liberalised norms would also be available to multi product diversified Companies which do not conform to the criteria of 80% of its turnover from the sectors mentioned in para 3(I) above, incase they fulfill the condition of average annual export earnings of Rs.100 Crores from these sectors in the three previous financial years. 4. These guidelines will come into force with immediate effect. Sd/- (G.S. Dutt....