BANKING AFFAIRS

Detailed explanation-1: -What is ESOP? Employee Stock option plan or Employee Stock Ownership Plan (ESOP) is an employee benefit scheme that enables employees to own shares in the company. These shares are purchased by employees at price below market price, or in other words, a discounted price.

Detailed explanation-2: -An employee stock option plan (ESOP) is a legal document permitting the company to issue stock options to certain insiders of the company: employees, directors, advisors and consultants.

Detailed explanation-3: -An ESOP qualifies as a retirement plan, such as a 401 (k) or individual retirement account, while corporations use stock options as an employee benefit, like health insurance. In an ESOP, the company contributes to employee retirement plans with its own stock.

Detailed explanation-4: -noun. : a form of deferred compensation that allows an employee to buy corporate stock at a set price (as the prevailing market price at the time of the contract) at any time (as when the market price has risen) during a designated number of years.

Detailed explanation-5: -company grants employee stock option.] (4) “employee stock purchase scheme (ESPS)” means a scheme under which the company offers shares to employees as part of a public issue or otherwise. [3][(4a) “ESOS shares” means shares arising out of exercise of options granted.