Yes,
Now, Nominee Directors (Directors appointed by Financial Institutions, etc... as their Representatives in the Company) are now eligible for ESOS (Employees Stock Option Scheme).
Employees Stock Option Plan / Scheme [ESOP / ESOS] – an option to Whole-time Directors / Nominee Directors / Officers / Employees to purchase / subscribe securities @ a future date @ a pre-determined price.
Such Nominee Directors has to comply with following conditions:
1. The Contract / Agreement entered into between the Nominating Institution and the Director so appointed, specifically provides for acceptance of ESOS of the company by SUCH Director.
2. That options (ESOS), if granted to the Director, shall NOT be renounced in favour of the Nominating Institution.
3. A copy of SUCH Contract / Agreement thereof, is filed with the company for the purpose of Company filing to Stock Exchange.
4. Such Director has to furnish a copy of SUCH Contract / Agreement at a Board Meeting, held NEXT to such Appointment.
The Amortisation Clause in the Accounting Policies of ESOS has been amended to SYNC in line with ICAI Guidance Note on "Employee Shared Based Payments".
'Guidance Note on Accounting for Employee Share-based payments' is revised to provide Companies/entities the option of related compensation cost to be recognised and accounted on a straightline basis over the total requisite service period for the entire award, provided that the amount of Compensation cost recognised at any date at least equaled the fair value of the vested portion of the award at that date.
Where the accounting value is accounted for as employee compensation in accordance with Clause (b), the amount shall be AMORTISED as under :
Clause (b) - The accounting value of options shall be equal to the aggregate, over all employee stock options granted during the accounting period, of the intrinsic value of the option or, if the company so chooses, the fair value of the option.
(i) Where the scheme does not provide for graded vesting, the amount shall be amortised on a straight-line basis over the vesting period.
(ii) Where the scheme provides for graded vesting -
(1) the vesting period shall be determined separately for each separate vesting portion of the option, as if the option was, in substance, multiple option and the amount of employee compensation cost shall be accounted for and amortised accordingly on a straight-line basis over the vesting period;
OR
(2) the amount of employee compensation cost shall be accounted for and amortised on a straight-line basis over the aggregate vesting period of the entire option (that is, over the vesting period of the last separately vesting portion of the option): Provided that the amount of employee compensation cost recognized at any date at least equals the fair value or the intrinsic value, as the case may be, of the vested portion of the option at that date."
Find the Amendments vide SEBI/CFD/DIL/ESOP/4/2008/04/08 dated August 4, 2008, which shall come into force WITH immediate effect.
Find amended SEBI (ESOS & ESPS) Guidelines, 1999
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