Esop Guidline 349

The document outlines guidelines for employee stock option plans (ESOPs) and employee stock purchase plans (ESPPs) for publicly listed companies in India. Key points include: 1) ESOPs and ESPPs must be approved by shareholders through a special resolution detailing key terms. 2) Options must vest within 8 years, be exercised within 5 years of vesting, and shares issued upon exercise are not locked-in. 3) A compensation committee will administer the plans and determine grants, ensuring compliance with insider trading laws. 4) Companies must disclose details of plans and options in annual reports, and account for the value of options as employee compensation.