Is it possible for non-residents outside India with ESOP shares to open a trading account?
Yes, non-resident individuals who have been allotted shares under an Employee Stock Option Plan (ESOP) by listed Indian companies are eligible to open a trading account in India. This facility allows such individuals to sell shares acquired through ESOPs, even if they currently reside outside the country.
Who is eligible?
- Employees of Indian listed companies
- Employees of joint ventures or wholly owned subsidiaries abroad
- Indian citizens or individuals of Indian origin allotted shares via ESOP
Important: This facility is not available to citizens of Pakistan as per RBI and FEMA guidelines.
Key points to note
- Purpose limitation: The trading account opened under this provision is restricted to the sale of ESOP shares only.
- Type of account: Typically, this is treated as a non-repatriable account unless approved otherwise by the Reserve Bank of India (RBI).
- Document requirement: Valid proof of ESOP allotment and residency status is required at the time of account opening.
What if...
| Scenario | What you should know |
|---|
| You want to buy additional stocks | Not permitted; the account is strictly for selling ESOP shares only |
| You are a Pakistani citizen | You are ineligible under current RBI guidelines |
| You already have an NRI account | A separate account may be required specifically for ESOP sales |
To simplify the process, keep your ESOP allotment documents and identity/residency proofs ready when initiating the trading account setup.
Last updated: 25 Jun 2025
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