esops to foreign nationals

1. No RBI approval for ESOS to overseas employee as per below provisions.
As per R. 8 of FEM (Transfer or Issue of Securities by a person resident out side India), Regulation 2000, An Indian
Company may issue shares under ESOS, to its employees or employees of its joint venture or wholly owned subsidiary
abroad who are resident outside India, directly or though a trust. Provided that the scheme has been drawn in terms of
regulations issued under SEBI Act, 1992 and face value of the shares to be allotted under ESOS to the non-resident
employees does not exceed 5% of the paid up capital of the issuing company.

2. As Reg. 8(3) of above, RBI reporting is must within 30 days of issue of shares.

3. Foreign national can open demat account, bank account and trading accounts as RBI KYC Norms. up to best of my
knowlege no RBI Approval is required.

4. Foreign employee can sale ESOS shares through stock exchagne/registered brocker at ruling market price.

5. As per R. 11(2) of the Regulation, an authorized dealer may allow the remittance of sale proceeds of a security (Net of
applicable taxes) to the seller of shares resident outside India.