Is it legal to transfer funds from my ESOP/RSU account?

Is it legal to transfer funds from my ESOP/RSU account?

In 2022, the Ministry of Finance published updated Overseas Investment regulations. Under these regulations, it was clarified that any shares acquired or received under Employee Benefits Schemes (includes ESOPs/RSUs) are considered as Overseas Portfolio Investments as long as these shares are less than 10% of the total equity of the company (which they are 99% of the time). 

Further, as per the RBI’s Liberalized Remittance Scheme regulations, Overseas Portfolio Investments can be re-invested in any other publicly-listed companies within a period of 180 days from its sale. 

In conclusion - An Indian resident with overseas ESOPs/RSUs in publicly listed companies can re-invest the funds from its sale in other listed stocks as long as they are reinvested within 180 days of the sale. 

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