ESOP Scheme

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CS Ashish Jain (Querist)
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23 February 2010 Can any one tell me the minimum and maximum period prescribed by the SEBI Guidelines in respect of the following so that i can incorporate such limits in the ESOP Scheme of our company.

(i) Lock in period between grant and vesting.
(ii) lock in period after exercise.
(iii) vesting period
(iv) Maximum period within which the options shall be vested.
(v) Exercise period under the plan.

I have already read the SEBI guidelnes so kindly provide me only time limits.

Ankur Garg

Ankur Garg (Expert)
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23 February 2010 There is nothing in the SEBI guidelines about the all 5 points. You have to define all 5 points yourself in the ESOP scheme.

You need a sample ESOP scheme. Search on google or contact a merchant bankar.

Regards

CS Ashish Jain

CS Ashish Jain (Querist)
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23 February 2010 After reading the SEBI guidline i came to know that there must be a minimum time period of one year between the grant of option and vesting.

So are you sure that SEBI guidlines are silent on all the five point which i mentioned in my query.

Ankur Garg

Ankur Garg (Expert)
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23 February 2010 Yes am 100% sure.

Your observation is correct. You have to draft your scheme in accordance with SEBI guidelines like one point mentioned by you regarding 1 year time gap.

So Good knowledge of sebi G.L. is imp while drafting scheme.

One more suggestion search on google ESOP GM resolution of any listed co.

As per my previous ESOP exp. GM resolution also plays imp role regarding 5 points mentioned by you.

Regards

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