RBI relaxes foreign direct investment norms for Indians

Business

oi-Sneha

By Sneha B K

Published: Thursday, March 29, 2012, 11:23 [IST]

The Reserve Bank of India on Wednesday reviewed the facilities available to resident individuals for acquiring equity shares of a foreign entity by way of / under qualification of shares, professional services rendered and ESOP scheme.

A person can acquire shares of an overseas company for holding the post of the Director and has it has also been deicided to remove (one) per cent on the ceiling for resident individuals to acquire qualification shares for holding the post of a Director in an overseas company.

RBI has decided to grant general permission to the 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.

General permission has been granted to a resident individual to purchase equity shares offered by a foreign company under its ESOP Scheme, it has also been decided that resident employees or Directors may be permitted to accept shares offered under an ESOP Scheme globally, on uniform basis, in a foreign company irrespective of the percentage of the direct or indirect equity stake in the Indian company.

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