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TMI BlogEmployees’ stock option plan or schemeX X X X Extracts X X X X X X X X Extracts X X X X ..... loyee allows the employer to withhold a certain portion of his monthly salary, the accumulated amount of which is utilized to acquire shares at a discounted value or otherwise at a future date. (ii) "Employee Stock Ownership Plan" whereby an employee of the company is given option to acquire shares of the company at a pre-determined price after a certain period, directly or indirectly through a trust. (iii) "Employee Stock Purchase Scheme" under which the company offers shares to an employee, as part of a public issue or otherwise at a predetermined price. (iv) "Employees Stock Option Scheme" under which the company grants option to its employees to buy a specified number of shares at a specified price during a specified period. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heme or plan comes into effect. (3) An Indian company issuing shares under such Employees' Stock Option Plan or Scheme shall comply, wherever applicable, with the regulations prescribed by the Securities and Exchange Board of India or any other regulatory authority, as the case may be, with regard to such plan or scheme and not contravene any other law, for the time being in force, that is material for giving effect to such plan or scheme. (4) These guidelines shall apply to the shares or stock equivalents issued by: (i) a company as defined in clause (17) of section 2 of the Income-tax Act, 1961 which— (a) is listed in a recognised stock exchange in India or a stock exchange outside India, (b) is an unlisted domestic company, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vested in him in pursuance of such plan or scheme, as the case may be, (iii) 'grant' means the issue of options under such plan or scheme of the company, (iv) 'option' means a right but not an obligation granted to an employee to apply for shares at a pre-determined price, (v) "promoter" means : (a) the person or persons who are in over-all control of the company; (b) the person for persons who are instrumental in the formation of the company or programme pursuant to which the shares were offered to the public; (c) the persons or persons named in the offer document as promoter(s) : Provided that a director or officer of the company, if he is acting as such only in his professional capacity will not be deemed to be a pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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