Incase the ESOP was purchased using INR from a local Indian bank (NRO Status):

3 Accounts needed (we assist you in opening these 3 accounts):

• NRO Bank Account (Non Resident Ordinary)
• NRO Demat Account
• Trading Account

Once these 3 Accounts are opened, you need to follow these steps:

Step1: Broker holding trading account sends The ‘Client Master Details’ to the client.

Step 2: Client provides these details to his employee.

Step 3: Employer deposits the shares in the client’s DMAT Account.

Step 4: The client can hold or sell these shares using his trading account.

Once the shares are sold, a cheque in INR for the value of shares sold is deposited in the clients NRO Bank.

Incase the ESOP was purchased using foreign currency/INR held on repatriable basis (NRE Status):

3 Accounts needed:

• NRE Bank Account (Non Resident External)
• NRE Demat Account
• Trading Account

Once these 3 Accounts are opened, you need to follow these steps:

Step1: The ‘Client Master Details’ are sent to the client.

Step 2: Client provides these details to his employee.

Step 3: Employer deposits the shares in the client’s DMAT Account.

Step 4: The client can hold or sell these shares using his trading account.

** As this ESOP was purchased in NRE status, the client would have to get an ‘Auditors Certificate’. Our broker will get Auditor’s certificate on your behalf (current fee that auditor takes is between Rs.2800 to Rs.3100).

However in order to attain an Auditors Certificate; the client needs to provide these details to the broker:

a)   Wire/Fund transfer details: Bank entry showing that the funds were transferred from the employee to the employer to purchase the ESOP.

b)   Allotment letter, that the client had received.
 

As soon as the Auditor Certificate is obtained by the broker, the client can go ahead and sell the shares and the cheque containing the proceeds is deposited in the client’s NRE Bank account.