Employee Stock Option plan

Kailash Moondra

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Apr 15, 2010, 8:15:59 AM4/15/10

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I want to know about the esop any ceiling fixed regarding No. of Shares alloted by the company in a year under the ESOP.

Thanks & Regards

K.C.Moondra

CS.Alagar

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Apr 15, 2010, 8:54:06 AM4/15/10

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There is no ceiling for total number of shares to be alloted under ESOS. However, if you are a listed Company allotment of shares under ESOS to an employee in a year is subject ceiling as specified in the SEBI ESOS guidelines.

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madhwesh acharya

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Apr 15, 2010, 9:02:21 AM4/15/10

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Dear Mr. K C Moondra,

There is no exclusive upper limit under law for the number of shares to be allotted under a Stock Option scheme / plan.

However, Para 6.2(a) of SEBI (ESOS and ESPS) Guidelines 1999 mandates shareholders, before passing resolution, should be intimated about total no. of options to be granted, Further, Para 6.3(b) of the guildelines mandates that a seperate shareholder's resolution shall be passed for granting options during a year which exceed 1% of the issued capital.

Subject to aforesaid provisions, the companies are free to fix ceilings under thier ESOS /. ESPS

On Thu, Apr 15, 2010 at 5:45 PM, Kailash Moondra <kc_moo...@yahoo.co.in> wrote:

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Ashwini Arveti

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Apr 15, 2010, 10:21:55 AM4/15/10

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Dear Moondra,

There is no ceiling limit regarding the issue and allotment of ESOP, however, there are other requirements to be fulfilled as per SEBI (ESOS & ESOP) Guidelines 1999.

Sriram Mohan

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Apr 15, 2010, 12:29:37 PM4/15/10

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Dear All,

Is it true that employees of a listed company cannot not be allotted more than 5% of the paid up share capital of the company?

Is there any restriction on the limit of shareholding that can be held by an employee?