Infosys Technologies Ltd, the first software company in India to plan an American Depository Receipt (ADR) is facing problems from the finance ministry in India. Infosys was planning to tap the American market to raise $125m, of which $75m was through an issue of fresh shares while another $50m was to be raised from the employee stock option scheme. The ministry has opposed the provision to issue stock options for employees through this scheme. According to the ministry, the $50m stock option scheme allows the employees of the Bangalore based firm access to ADRs and violates the provisions of the Foreign Exchange Regulation Act of India which does not allow overseas stock trading by resident Indian citizens.
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