Section 8 in The Foreign Exchange Management (Transfer Or Issue Of Security By A Person Resident Outside India) Regulations, 2000
8. Issue of shares under Employees Stock Options Scheme to persons resident outside India.
- [(1) An Indian company may issue "employees' stock option" and/or "sweat equity shares" to its employees/ directors or employees/ directors of its holding company or joint venture or wholly owned overseas subsidiary/ subsidiaries who are resident outside India, provided that: [Substituted by Notification No. G.S.R. 484(E), dated 11.6.2015 (w.e.f. 8.5.2000).](a)The 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 Debentures) Rules, 2014 notified by the Central Government under the Companies Act 2013, as the case may be.(b)The "employee's stock option"/ sweat equity shares issued to non-resident employees/ directors under the applicable rules/ regulations are in compliance with the sectoral cap applicable to the said company.(c)Issue of "employee's stock option"/ sweat equity shares in a company where foreign investment is under the approval route shall require prior approval of the Foreign Investment Promotion Board (FIPB) of Government of India.(d)Issue of "employee's stock option"/ sweat equity shares under the applicable rules/ regulations to an employee/ director who is a citizen of Bangladesh/ Pakistan shall require prior approval of the Foreign Investment Promotion Board (FIPB) of Government of India.(2)The Reserve Bank may require the company issuing "employees' stock option" and/or "sweat equity shares" to submit such reports and at such frequency as it may consider necessary.] [Inserted by Notification No. G.S.R. 818 (E) dated 4.10.2013 (w.e.f. 8.5.2000)]
