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Para 9 - Lock-in period and rights of the option-holder - SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999Extract 9. Lock-in period and rights of the option-holder: 9.1 There shall be a minimum period of one year between the grant of options and vesting of option. [ 1 ][Provided that in a case where options are granted by a company under an ESOS in lieu of options held by the same person under an ESOS in another company which has merged or amalgamated with the first mentioned company, the period during which the options granted by the transferor company were held by him shall be adjusted against the minimum vesting period required under this clause.] 9.2 The company shall have the freedom to specify the lock-in period for the shares issued pursuant to exercise of option. 9.3 The employee shall not have right to receive any dividend or to vote or in any manner enjoy the benefits of a shareholder in respect of option granted to him, till shares are issued on exercise of option. ***** [1] Inserted vide circular no. SEBI/CFD/DIL/ESOP/3/2004/22/7 dated July 22, 2004, for all mergers or amalgamations whose effective date is on or after July 22, 2004.
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