Share Based Employee Benefits: Forex Compliances

A company registered under the Indian Companies Act, 2013 ('Companies Act') raises share capital in different forms by issuing different classes of shares and securities, of which a company can issue certain shares benefiting its employees, directors and other officers in the form of Employee Stock Option Plan ('ESOP'), and other share based benefits to the employees such as employee stock purchase scheme, Stock appreciation rights scheme, sweat equity shares, etc. (collectively referred as 'Share Based Employee Benefits'). These issuances by Indian company are being regulated in India by the Securities Exchange Board of India ('SEBI').

As per the Companies Act 'Employees Stock Option' is a scheme under which options are granted to the directors, officers or employees of a company or of its holding company or subsidiary company or companies, giving them the benefit or right to purchase, or to subscribe for, the shares of the company at a future date at a