Employee Stock Ownership Plans in India

An Employee Stock Ownership Plan, or ESOP, is an employee benefit initiative providing staff members with a stake in the company. These plans may take the form of direct stocks, profit-sharing schemes, or bonuses, with the determination of eligible employees solely at the discretion of the employer. ESOPs essentially offer employees the opportunity to purchase company stocks at a predetermined price before a specified exercise date, requiring employers to comply with detailed regulations outlined in the Companies Rules when issuing ESOPs.