Employee Stock Option Plan
Author: Corporate Info
•4:26 pm
Employee Stock Option Plan means a plan under which the Company offers shares to the employees. It is only a right but not an obligation to the employee to apply for and be allotted shares of the Company at a predetermined price. The employee is given a time period within which the option shall be exercised. The price payable by the employee for the shares shall be determined by the Compensation Committee of the Board of the Company. The Compensation Committee shall also formulate the detailed terms and conditions of the option. The ESOP shall be approved by the shareholders by a special resolution passed by the members of the Company.

There shall be a minimum period of one year and a maximum period of eight years between the grant of options by the Company and vesting of the same by the employee. Here vesting means the process by which the employee gets the right to apply for the shares.

Once the employee gets the right to exercise his option, it shall be exercised within a maximum period of 5 years from the date of vesting.

An employee who is a promoter or a part of the promoter group shall not be eligible to participate in the ESOP. A director who either by himself or through his family or through any investment company, directly or indirectly holds more than 10% of the outstanding equity shares of the Company shall not be eligible to participate in the ESOP.

Where a stock option has been granted to an employee, it shall be exercised only by the employee and shall not be transferable.








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