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AAFM CWM_LEVEL_2 Exam - Topic 7 Question 47 Discussion

Section C (4 Mark)Read the senario and answer to the question.Ms. Deepika is interested in investments in foreign markets. Her brother is working in one of reputed American company in India and that is offering him some shares under ESOP scheme. This company is not listed in India. It is listed in New York Stock Exchange. Ms. Deepika is asking her manager how this transaction will took place for her brother?
D) Her brother can purchase shares of foreign companies listed abroad under ESOP without any kind of restriction and he can send remittance without any limit.
A) Her brother cannot invest in American shares as he is working its office situated in India.
B) Her brother can invest in American company but purchasing under ESOP he must be employed in America.
C) Her brother can invest in American ESOP by taking prior approval from the RBI for this.

AAFM CWM_LEVEL_2 Exam - Topic 7 Question 47 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 47
Topic #: 7
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Read the senario and answer to the question.

Ms. Deepika is interested in investments in foreign markets. Her brother is working in one of reputed American company in India and that is offering him some shares under ESOP scheme. This company is not listed in India. It is listed in New York Stock Exchange. Ms. Deepika is asking her manager how this transaction will took place for her brother?

Show Suggested Answer Hide Answer
Suggested Answer: D

by Justine at Aug 24, 2022, 04:17 PM

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Lavelle
7 months ago
Option B seems off, ESOPs are tied to employment, right?
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Theresia
7 months ago
Wait, can he really invest in US shares while in India?
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Erick
8 months ago
I agree with C, the regulations are strict for foreign investments.
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Sharmaine
8 months ago
No way, option D sounds too good to be true!
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Susana
8 months ago
I think option C is correct. RBI approval is usually needed.
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Jodi
8 months ago
I lean towards option D, but I wonder if there are any hidden restrictions on remittances that we might have missed in our studies.
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Leota
8 months ago
I feel like there was a practice question about foreign shares, but I can't recall if employment location matters for ESOPs.
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Floyd
8 months ago
I think option C sounds familiar because we talked about RBI regulations regarding foreign investments.
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Margart
8 months ago
I remember discussing ESOPs in class, but I'm not sure if there are restrictions for employees working outside the US.
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Darci
8 months ago
Okay, let me break this down. Maintaining the accounts receivable ledger and receiving cash payments seems like it could create an opportunity for misappropriation of funds. Depositing cash separately from receiving it is probably a better practice.
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Ryann
8 months ago
An Apex trigger on the Opportunity object seems like the way to go. That way, we can check the related Request__c records and prevent deletion if there are any open or closed ones.
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Laurel
9 months ago
I remember studying that the payback method doesn't account for the time value of money, which makes option C seem incorrect too.
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