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Recent RBI Circular Modifying Regulatory …

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Recent RBI Circular Modifying Regulatory Requirements in connection with Grant of ESOPs/ Sweat Equity Shares to Non-residents 1. Background Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000 ( Regulations ) read with Foreign Direct Investment ( FDI ) Policy as updated from time to time used to govern the Regulatory and compliance aspects of Employee Stock Options ( ESOPs ) being issued by an Indian Company to its employees resident outside India ( Non-resident employees ).

2 (i) The ESOP Scheme has been drawn either in terms of regulations issued under the Securities Exchange Board of India Act, 1992 or the Companies (Share Capital and

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