Question

Explain provisions that the company must fulfil.

Answer 1

The company must fulfill the following provisions:

1. Different numbers of shares can be offered to different categories of employees.
2. Shares issued through ESPS should be immediately listed.
3. 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.
4. The company has to fulfill the provisions of the SEBI (Shares Based Employee Benefits) Regulations, 2014.
5. The company has to get the approval of the shareholders through a special Resolution to offer ESPS.