Employee Stock Options in the Context of a Private Limited Company in India
by Rishi Batta Law FirmThe Employee stock option plan (“ESOP”) is a scheme or
plan that provides an option/ right to the directors, officers or employees of
a company or of its holding company or subsidiary company to purchase or to
subscribe to the shares of the company at a future date at a pre-determined
price. The person to whom such option has been granted by a company has an
option to exercise such right to subscribe shares of the company at a future
date, but not before a year from the date of grant of such option.
The pre-determined price is arrived at after the
valuation of shares of the company has been conducted by a SEBI Registered
Merchant Banker – Category I.
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Created on Jul 29th 2021 07:45. Viewed 202 times.