fiogf49gjkf0d
This Circular has proposed the following three changes:
(1) Acquiring qualification shares of an overseas company for holding the post of a Director A resident individual can now remit funds, within the overall ceiling prescribed from time to time under the Liberalised Remittance Scheme, for acquiring qualification shares for holding the post of a Director in the overseas company up to the extent required by the laws of the host country where the company is located.
(2) Acquiring shares of a foreign company towards professional services rendered or in lieu of Director’s remuneration General permission is granted to resident individuals to acquire shares of a foreign entity in part/ full consideration of professional services rendered to the foreign company or in lieu of Director’s remuneration. However, the value of such shares must be within the overall ceiling prescribed from time to time under the Liberalised Remittance Scheme.
(3) Acquiring shares in a foreign company through ESOP Scheme Permission has been granted to resident employees or Directors of an Indian company to accept shares offered under an ESOP Scheme in a foreign company, irrespective of the percentage of the direct or indirect equity stake of the foreign company in the Indian company, provided:
(i) The shares under the ESOP Scheme are offered by the issuing company globally on a uniform basis,
(ii) Annual Return is submitted by the Indian company to the Reserve Bank through the AD Category-I bank giving details of remittances/ beneficiaries, etc.
