REGULATORY PROVISIONS GOVERNING ESOPS IN INDIA

Employee Stock Ownership Plan (ESOP) is a kind of employee benefit plan formulated by the Company, through which certain key employees of the company are provided with option to purchase shares in the Company, at a future date, at an agreed price (usually nominal value or at a discount to market value). Most of the Companies these days, majorly start-ups, are resorting to ESOPs as a key measure to retain their employees.