Article
Share Based Employee Benefits: Forex Compliances By Noorul Hassan and Navyashree R
The article in this issue of Corporate Amicus discusses the forex compliances relating to Employee Stock Option Plan (‘ESOP’), and other share-based benefits to the employees provided by the employer, such as employee stock purchase scheme, Stock appreciation rights scheme, sweat equity shares, etc., which are collectively referred as ‘Share Based Employee Benefits’. The authors in this regard state that issuance of such benefits to an employee residing outside India qualifies as FDI in the books of the Indian company and requires compliances under NDI Rules. Similarly, acquisition of Share Based Employee Benefits by an employee residing in India qualifies as an ODI and requires compliances under LRS and ODI Rules prescribed by RBI.
Notifications and Circulars
- FEMA Export Regulations amended to include Offshore Support Vessels
- Form INC-22A under Companies (Incorporation) Rules, 2014 amended
- SEBI announces special window for re-lodgement of physical share transfer requests
- Form CSR-1 under Companies (Corporate Social Responsibility Policy) Rules, 2014 amended
- NSDL Payments Bank Limited included under Second Schedule of RBI Act
Ratio decidendi
- Withdrawal of voluntary liquidation can be permitted by NCLT by invoking inherent powers, despite absence of specific provision in IBC – NCLT Chandigarh
- Agreement clause stating that arbitration ‘may be sought’ to resolve disputes will not constitute a binding arbitration agreement – Supreme Court
- Arbitration cannot be restricted to specific respondents when several agreements form an integral part of the entire transaction forming a composite whole – Delhi High Court
- Even-numbered Arbitral Tribunals permissible under statutory arbitration under MSMED Act – Calcutta High Court
- Tenant cannot resist eviction under SARFAESI Act unless the tenancy is established from date before mortgage creation – Supreme Court
News Nuggets
- Competition Commission approves TPG and SGRE’ Wind Power deal
- MeitY drives expansion of Global Capability Centres beyond the metro cities
- ₹1,000 crore scheme launched to promote energy efficiency in MSMEs
- Multiple PE firms seek CCI approval for stake purchase in Theobroma
- Competition Commission penalizes Carlyle and Bequest for regulatory non-compliance
- BlackBuck’s subsidiary obtains RBI licence to offer digital payment solutions
