india recognized legally stocks phantom
The appointment of a director who is a resident or citizen of China to a company's board of directors typically involves several steps and considerations, depending on the jurisdiction and the specific company's requirements including DIN Clearance from MHA.
As per the Companies (Appointment and Qualification of Directors) Rules, 2014, individuals who are citizens of the aforementioned neighboring countries require approval from the Ministry of Home Affairs (MHA) before they can obtain a DIN and become directors in Indian companies.
china citizen resident director appointment
Does the login has to be created for foreign national??
Recent Amendment in Companies ( appointment and qualifications) Rules by ministry of corporate affairs.How to get security clearance by MHA ?
As per , Notification dated 01st June 2022
I have submitted a security clearance application on behalf of an individual through the portal.
However, the status still indicates that the application is 'submitted.' Is there a specific time limit for approval, and if not, where can I raise a complaint or seek assistance in this matter?
Is there an authority or physical location where I can visit with the required documents to expedite the approval process?
I the director is of Taiwanese origion, will it be mandatory for getting security clearance
Please confirm after filing of an Application how to track approval on https://esahajmcaservices.nic.in/
How to verify for Directors Disqualification under Sec 164(2), vacation under Sec 167
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Phantom stocks, also known as shadow stocks or virtual stocks, are not specifically recognized or regulated under Indian company law or securities regulations. Phantom stocks are a form of employee incentive or compensation plan where employees receive hypothetical or notional units that track the value of the company's shares without actual ownership.
In India, the primary regulations governing employee stock-based compensation plans are the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 (ESOP Guidelines). These guidelines primarily focus on stock options and stock purchase plans, which involve the issuance of actual shares to employees.
Since phantom stocks do not involve the issuance of actual shares, they do not fall within the purview of the ESOP Guidelines. As a result, there are no specific regulations or guidelines that govern the implementation of phantom stock plans in India.
However, companies in India have implemented phantom stock plans on a contractual basis, guided by the principles of contract law and general employment practices. The terms and conditions of the phantom stock plan are typically outlined in an agreement or scheme document between the company and the participating employees.
It's important to note that the taxation of phantom stock plans in India can be complex, and companies should seek advice from tax professionals to ensure compliance with applicable tax laws and regulations. The taxation treatment may vary depending on the specific structure and terms of the phantom stock plan.
While phantom stock plans are not legally recognized or regulated in India, companies may choose to implement such plans based on contractual agreements and prevailing employment practices.