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Para 4 - Eligibility to participate in ESOS - SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999Extract PART A: ESOS 4. Eligibility to participate in ESOS: 4.1 An employee shall be eligible to participate in ESOS of the company. [1] [Explanation: Where such employee is a director nominated by an institution as its representative on the Board of Directors of the company (i) the contract/ agreement entered into between the institution nominating its employee as the director of a company and the director so appointed shall, inter-alia, specify the following: (a) whether options granted by the company under its ESOS can be accepted by the said employee in his capacity as director of the company; (b) that options, if granted to the director, shall not be renounced in favour of the nominating institution; and (c) the conditions subject to which fees, commissions, ESOSs, other incentives, etc. can be accepted by the director from the company. (ii) the institution nominating its employee as a director of a company shall file a copy of the contract/ agreement with the said company, which shall, in turn, file the copy with all the stock exchanges on which its shares are listed. (iiii) the director so appointed shall furnish a copy of the contract/ agreement at the first Board meeting of the company attended by him after his nomination.] 4.2 An employee who is a promoter or belongs to the promoter group shall not be eligible to participate in the ESOS. 4.3 A director who either by himself or through his relative or through any body corporate, directly or indirectly holds more than 10% of the outstanding equity shares of the company shall not be eligible to participate in the ESOS. ********* [1] Inserted vide circular no. SEBI/CFD/DIL/ESOP/4/2008/04/08 dated August 4, 2008, w. e. f. August 4, 2008.
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