The industry ministry approved a clutch of proposals on Thursday including one by Satyam Computer worth Rs 72.8 million to increase its foreign equity to 40 per cent from 27.05 per cent. "We had made an application to the government in November for permission to allot shares to foreign citizens who are our employees under the employee stock option scheme of the company," vice-president (finance) V Srinivas said. "I think the clearance pertains to this application," he said, adding he was yet to receive official confirmation from the government. The Centre's announcement had caused some confusion in the stock market on what the clearance pertained to.

Srinivas said foreign employees of Indian firms could not own shares unless the Centre gave specific permission and this was treated as foreign direct investment (FDI). He said the company had sought a higher blanket limit for the stock options to foreign citizens but actually proposed to issue only 0.1-0.2 percent of Satyam's equity capital now. "For the entire stock option scheme we have set aside only five per cent of Satyam's equity," he said.