The Indian government has allowed software firms to issue US dollar-denominated stock options to their staff. Ordinarily, Indian nationals are not allowed to hold overseas stock, but the government has changed tact in the case of software firms, taking into account the leading position of the industry in the world and its critical need to retain skilled manpower. The stock option schemes will have to be structured through American Depository Receipts, or Global Depository Receipts issued by Indian software firms in the US or Europe. Infosys Ltd, one of India’s leading software firms is expected to be the first to take advantage of the scheme after a planned issue of ADRs later this year. The firm plans to issue $25m worth of stock options to employees.
