Sistema Numeracion

This document summarizes legal and strategic issues related to a U.S. parent company granting stock options to employees of its Indian subsidiary. It discusses India's exchange controls, securities laws, tax implications, and employment law considerations. Specifically, it outlines rules for option exercises and share repurchases in India, as well as a new fringe benefits tax of 33.99% imposed on the employer for the difference between exercise price and fair market value. Overall, stock options can still be an effective compensation tool in India despite these complexities, but employers must carefully evaluate compliance with the changing regulatory environment.