Compliance and reporting aspects in connection with grant of employee stock options ("ESOPs") by an Indian company to its employees,
or employees of its subsidiary or holding company being resident outside India ("Non-resident Employees") and exercise of such ESOPs by the Non-resident Employees,
have been prescribed in Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 ("FEMA Regulations").
The FEMA Regulations among others prescribe:
The norms governing grant of ESOPs to Non-resident Employees; and
The form of reporting (referred to as "Form-ESOP" in the FEMA Regulations) at the time of grant and exercise of ESOPs that is allotment of underlying shares.