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Tuesday, May 04, 2004

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Norms for foreign securities under ESOP relaxed

Our Bureau

Mumbai , May 3

THE Reserve Bank of India has relaxed the guidelines for the acquisition of foreign securities under the ESOP scheme, consequent to which, henceforth, such shares need not be offered at a concessional price, and the sale of such shares does not require prior RBI approval, as long as the proceeds are repatriated to India.

Necessary amendments to the Foreign Exchange Management, ie., transfer or issue of any foreign security regulations, 2000, are being issued separately, the apex bank said in a circular issued today.

Earlier, a resident individual who is an employee or director of an Indian office or branch of a foreign company in which the foreign holding is not less than 51per cent was permitted to acquire foreign securities under ESOP Scheme, without any monetary limit, provided the shares under ESOP are offered at a concessional price.

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