Sweat equity to become easier for MNCsANINDITA DEY / Mumbai April 05, 2006The Reserve Bank of India is set to relax the norms for issuance of employee stock options (Esops) by foreign companies to their employees in India.The proposed relaxation may allow a foreign company to issue Esops even if it has an indirect holding of 51 per cent in an Indian subsidiary, according to sources close to the development. At present, only those foreign companies which directly hold at least 51 per cent stake in their Indian ventures can issue Esops.Foreign companies may also be allowed to buy back their shares if an employee does not subscribe to it. Employees can buy stock options only if they continue in their jobs for three years at a stretch. But, if an employee leaves a job within three years, the shares are returned to a trust formed by the company in India. Thereafter, the company has to take the RBI
