What should India-based employees check before exercising or selling IPO shares?
Our answer
Read the plan documents and ask the employer’s stock-plan administrator for the exercise window, approved broker and any lock-up or blackout dates. Confirm whether the securities are vested and when they become tradable. Have a qualified tax or remittance adviser review the details for your residence.
Exercise versus sale
Exercising an option and selling the resulting shares are separate events. Ask the plan administrator which settlement choices are actually available.
Records to retain
Keep the grant, vesting, exercise and sale statements, along with exchange-rate and withholding records. Check the issuer and plan rules before assuming you can sell at listing.