Purchase of shares not funded from your PIS Bank Account are termed as non - PIS transactions.
Shares allotted to you under Employee Stock Options Scheme (ESOP) come under the non- PIS Transactions category.
Steps to be noted for sale of your ESOP shares:
> Place the sell order either by logging on to your trading account through ITS or by calling our NRI DESK on 044 39189461 / 044 39189473.US and Canada based clients can call our VOIP numbers on +1 9143687760.
> Send an email to firstname.lastname@example.org the same day informing us to classify this sale as non PIS transaction so that RBI reporting is not done.
> Do not sell shares acquired through ESOP and shares acquired by you in Secondary Market in NRI status (through your PIS Bank Account) on the same day.
If you are holding the shares without Repatriation benefits (NRO status), the proceeds will be credited automatically to the NRO SB Bank Account that is attached to your TRADING Account within 3 working days from the date of SETTLEMENT. The SETTLEMENT happens in 2 working days from the date of sale.
If you are holding the shares with Repatriation benefits (NRE status), following are the documents to be provided to us for crediting the proceeds into your NRE Savings Bank Account:
1) Allotment letter issued by the Company
2) Proof of payment done from your NRE Bank account or your Foreign Bank Account. It could be the copy of the cheque / transfer instruction (WIRE TRANSFER
3) Signed copy of attached annexure form duly filled by you. (Attached are separate Annexure forms for HDFC Bank and Axis Bank)
4) Vesting letter (grant letter) for ESOP option exercise
5) FIGPR Copy (RBI Approval letter) if the same normally mentioned in Allotment letter. If not, separate letter issued by the company at the time of allotment.
Based on the documents submitted by you, we have to arrive the tax liability if any through Chartered Accountant and obtain the 15CB (Tax certificate) . Cost of Auditor’s certification will be deducted as a process from the proceeds. Else the client should transfer the Auditor’s fee to the Trading Account. Cost of certification will be confirmed by us through a separate email.
Upon completion of the tax calculation, we will prepare and upload the 15CA to INCOME TAX department and deduct the necessary tax amount if any (TDS) from the sale proceedings and the balance amount along with the documents forwarded to the bankers for crediting the sale proceeds in to the NRE – Savings bank account.
Banker will take between 3 to 5 working days to validate and credit the proceeds to your NRE SAVINGS Bank Account.