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Which law regulates ESOPs by listed company ?
Question
Which law regulates ESOPs by listed company ?
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Mathematics
2 years
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Answer ( 1 )
In case of listed companies SEBI ( Employee Stock Option And Employee Stock Purchase Scheme) Guidelines, 1999 provides the guidelines for the ESOPs.
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ESOP stands for the Employee Stock Option Plan. It is a scheme exclusively launched by the company for its employees. Under this scheme the employees of the company are given the option to buy shares or securities at a price which is lower than that prevailing in the market.