RBI Eases Rules for Overseas Investments in ESOPs; No Remittance Limits if Foreign Firm Owns 51% Stake.

The circular issued by the Reserve Bank of India liberalizes regulations for overseas investments under the Employees Stock Option Schemes (ESOPs). Authorised Dealer banks can now permit remittances for acquiring shares under ESOPs without monetary limits, provided the foreign company holds at least a 51% stake in the Indian company. The foreign company can repurchase shares issued under ESOPs with general permission, subject to specific conditions. Indian entities must route communications regarding overseas investments through designated branches of Authorised Dealer banks. Amendments to relevant regulations will be issued separately, and banks are advised to inform their clients accordingly.

---

---

---