Issue Of Shares Under Employees Stock Options Scheme And/Or Sweat Equity Shares To Persons Resident Outside India

Regulation 8 of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (FEMA 20) has been modified pursuant tothe through the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2015 notified on June 11, 2015. Now an Indian company may issue 'employee stock option plans' or 'sweat equity shares' to non-resident employees/directors of its holding company, joint venture or wholly owned overseas subsidiaries under a schemesubject to the conditions which inter alia include: (i) the scheme should be drawn in accordance with regulations issued under Securities Exchange Board of India Act, 1992 (SEBI Act) or the Companies (Share Capital and Debenture) Rules, 2014 (as applicable), and(ii) the scheme should comply with the sectoral cap applicable to the Indian company. 

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