ESOPs and Their Objective Employee Stock Option Plans are strategic initiatives designed to align employees’ interests with the Company’s success. The primary objective of ESOPs is to foster a sense of ownership and motivation among employees by providing them with a stake in the Company’s ownership.  Understanding ESOP Cost Recognition ESOPs do come with costs, primarily in the form of the expenses associated with granting stock options or equity grants to employees. These costs need to be recognized and accounted for accurately to ensure compliance with accounting standards and regulat ..read more

Tax Collection At Source on Remittances made by Indian Employees towards ESPP / other Equity Incentive Schemes of Foreign Entities, and Potential Solutions Read More ..read more

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Employee Stock Options (ESOPs) serve as a valuable tool for companies to attract and retain talent while aligning employee interests with those of the organization. However, navigating the complexities of exercising options and managing associated costs can pose challenges for employees. To address these hurdles, companies are increasingly exploring innovative solutions such as cashless exercise and ESOP funding. In this article, we delve into the intricacies of these mechanisms and their implications for both employers and employees. Understanding the ESOP Life Cycle Before delving into cash ..read more

In the realm of talent retention strategies, Employee Stock Options (“ESOPs”) have emerged as a powerful tool on the global stage. As businesses span across borders, the allure of ESOPs extends to a myriad of international enterprises already operating within India’s domain. This phenomenon doesn’t end with domestic shores. Indian companies, too, have a unique vantage point. They have the capability to extend ESOP offerings to their personnel hailing from foreign holding/parent company or subsidiaries (“Group”). This interplay between entities from different corners of the world raises a sign ..read more

Employee Stock Ownership Plans (ESOPs) stand as a popular method for businesses to inspire and involve their workforce by granting them a stake in the company’s achievements. Nonetheless, the management of ESOPs frequently presents intricate and time-consuming challenges. Manual procedures often result in errors, compliance dilemmas, and employee dissatisfaction. The remedy? Embrace the capabilities of automation to streamline ESOP administration. Understanding ESOP Administration: Before delving into the advantages of automation, let’s gain a brief comprehension of what ESOP administration d ..read more

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As per Rule 19(2)(b) and 19A of the Securities Contracts (Regulation) Rules, 1957 (“SCRR”), read with Regulation 38 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”), the companies listed on the stock exchange(s) are required to comply with Minimum Public Shareholding (“MPS”) requirements. As per the provisions mandated by the Securities and Exchange Board of India (“SEBI”), MPS refers to the minimum percentage of a company’s total issued and paid-up equity share capital that is mandatorily required to be hel ..read more

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