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Question
Explain provisions that the company must fulfil.
Solution
The company must fulfill the following provisions:
- Different numbers of shares can be offered to different categories of employees.
- Shares issued through ESPS should be immediately listed.
- ESPS shares will have a minimum of one year lock-in period from the date of allotment if ESPS is not a part of the public issue.
- The company has to fulfill the provisions of the SEBI (Shares Based Employee Benefits) Regulations, 2014.
- The company has to get the approval of the shareholders through a special Resolution to offer ESPS.
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