The new Overseas Investment (OI) Rules issued on August 22, 2022 replace all previously available exemptions to grant share-based awards to Indian residents with a single exemption (the new “general permission”), which requires, inter alia, that semi-annual reports be filed with the Reserve Bank of India (RBI). The reports will need to be submitted by an Authorized Dealer Bank in India (i.e., the bank in India involved with the remittance of funds under the plan)…
On August 22, 2022, the Indian Government issued new exchange control rules affecting share-based awards offered to Indian residents by non-Indian issuers. In particular, the Indian Government issued the Foreign Exchange Management (Overseas Investment) Rules, 2022 (“OI Rules”), Foreign Exchange Management (Overseas Investment) Regulations, 2022 (“ODI Regulations”) and Foreign Exchange Management (Overseas Investment) Directions, 2022 (“ODI Directions”). The new OI Rules replace all previously available exemptions to grant share-based awards to Indian residents with a single…