employee stock option scheme

esops dene k time co secondary market se bhi shares de sakti he to vo shares to public k pass hoge to employees ko dene k time vo shares nikalege kaha se ager public k pass se buy kiya to exit price dena padega na sharehoders ko jo bhot high hota he to co secondary market se shares kaha se jama karegi ?

A company may implement a scheme(s) either directly or by setting up an irrevocable trust(s). At the time of exercise by the employees, the ESOP Trust first acquires the shares from the secondary market/ company and then it transfers the shares in the name of the eligible employee. Subject to the requirements of the Companies Act, 2013, the company may lend monies to the trust on appropriate terms and conditions to acquire the shares either through new issue or secondary acquisition, for the purpose of implementation of the scheme(s). The shares from secondary market will be purchased on market price by trust.

Answer given by Shubhamm Sir at 22-Apr-2023 05:25 PM