Section 24(3) in The Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004
(3)[ An Indian company in the knowledge based sector may allow its resident employees (including working directors) to purchase foreign securities under the ADR/GDR linked stock option schemes:Provided that the issue of employees stock option by a listed company shall be governed by the SEBI (Employees Stock Option and Stock Purchase Scheme) Guidelines, 1999 and the issue of employees stock option by an unlisted company shall be governed by the guidelines issued by the Government of India for issue of ADR/GDR linked stock options.Provided further that the consideration for the purchase does not exceed the ceiling as stipulated by the Reserve Bank from time to time.Explanation .-For the purpose of this clause "knowledge based sector" means such sectors as have been notified by the Government of India from time to time in terms of its guidelines for the issue of ADR/GDR linked Employees Stock Options by the Indian companies dated 15th September, 2000.] [ Substituted by G.S.R. 220(E), dated 31.3.2005 (w.r.e.f. 1.10.2004).]
