Account opening of Foreign Nationals for ESOP purpose is made simple

Yes, Foreign Nationals no more have to open an NRI Bank Account in India to sell the Stocks allotted to them through ESOP. It is quite simple now. All that you got to do is set up a Trade and Demat account with us and attach your existing foreign bank account. You actually don’t need an Indian bank account to start exercising your ESOP shares or the shares allotted to through promoters’ quota The below-given FAQs will provide you more insight into this Do you open an account for Foreign Nationals? Yes, we do open. However, there are 2 types of accounts, one is Foreign Portfolio Investment (FPI) Account and the other is a simple Foreign National (FN) Account. What is the difference between FPI and simple FN accounts? FPI or Foreign Portfolio Investment account allows a foreigner national to Invest / Trade-in Indian Market with prior permissions from the required Regulators. A simple FN account is opened for a special purpose, such as exercising of Employees Stock options, Sale of these stocks, and remittance of the sale proceeds. How does FN Account Work? Open a Trading, Demat (in India) with TradeplusrnAttach your existing Foreign Bank account to your Demat Account. Alternatively, you can also open a Bank account in India and attach the same to your Demat Account.rnShare your Demat account details (opened with Tradeplus) to your EmployerrnGet credit for ESOP shares to your Demat account. Your employer makes this credit transfer on submission of the Demat Account detailsrnSell the Stock Options (ESOP) sharesrnRemit the sale proceeds to a foreign bank accountrnWhat is the procedure to open a FN account? The procedure to open a FN account is listed below sequentially Produce your existing Foreign Bank account details or Open an NRO bank account in IndiarnOpen a Demat account with Tradeplus and link your foreign bank Account or the newly opened Bank Account in India to the Demat account.rnOpen Trading Account with TradeplusrnDoes Tradeplus help in opening all the above-said account to set up an FN account? Yes, we help in opening all 3 accounts. We coordinate with our strategic partners to open a bank account in India and we open the Trading and Demat account with us. What are the documents required to open an FN account? The following are required to open the account: a) 2 sets of Notarized and self- attested copy of Pan Card. In case a Foreign National does not have a PAN we assist him/her to get one. b) 2 sets of Notarized and self- attested copy of Foreign Passport c) 2 sets of Notarized and self- attested copy of Foreign Proof of address, which can be a Driving License / Latest Utility bill/ Last 2 months bank statement and other documents as accepted by the Regulator d) ESOP allotment letter e) Proof of exercising options, payments made to exercise options, tax paid (if any) f) Filled and signed bank application form if an Indian bank account is to be opened or simply share your foreign bank account details g) Filled and signed Trading and Demat account opening form h) Four passport size photographs signed across the document. Your account will be opened within 24 hours of receiving the above-listed documents if you choose to attach your existing Foreign Bank Account to your Demat Account / Trading Account with us How does an FN get the dividends credited? The dividends declared by the company will be credited via ECS (Electronic Clearing System) in the bank account which is linked to the Demat Account.