Direct Listing
Esop Advisory
Employee Stock option Plan (ESOP) is a corporate strategy for retaining and motivating employees. Under which a company gives its employees the right to buy a certain number of shares at a fixed price (grant) for a certain period of time in years. An employee is required to complete the vesting period to exercise the option. New generation companies are using ESOPs to retain highly skilled employees. In an extremely competitive IT sector, the sense of ownership encourages employees to pursue a long-term career. It is a right, not an obligation for employees to buy shares at a predefined price.
To start with the mission is employee retention, but ESOPs also help in saving of cash compensation. By granting stock option to employees, a company can save funds to channelize the growth.
REQUIREMENT OF VALUATION UNDER ESOP:
Ind AS 102:Ind AS (Indian Accounting Standard) 102 prescribes financial reporting in respect of share-based benefits and is relevant for companies which remunerate their employees by share-based (or stock option) schemes, such as Employee Stock Options (ESOP), Share Appreciation Rights (SAR), Phantom Equity, Share Purchase Plans (SPP) etc.
Income Tax provisions:In reference to amendments vide the Finance Act, 2009, the ESOPs has been made taxable in the hands of employees as ‘Perquisites’, subject to certain conditions. For the purposes of clause (vi) of sub-section (2) of section 17, the fair market value of any specified security or sweat equity share, being an equity share in a company, on the date on which the option is exercised by the employee, shall be determined merchant banker (if shares are not listed).
Regulatory Framework
The norms for Direct Listing governed by the bylaws of the stock exchange on which the listed Company decided to get its equity shares listed and vary from Stock Exchange to stock exchange.
Corporate Makers Capital (CMC) offer to provide you our following professional services in relation to direct listing of equity shares at nationwide Stock Exchange:
- Drafting of Application for In Principle Approval, Listing Approval, Information Memorandum and required annexures.
- Advisory on maintenance of Company Website according to Regulation 46 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- Advisory on Compliances of SEBI (Listing Obligations and Disclosure Requirements) Regulations required for listing of equity shares.
- Advisory on site visit by BSE/NSE Officials
- Liasoning with the Stock Exchange.
- Getting the Listing Approval from the Stock Exchange.
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Why You Should Choose Us?
CMC offers a complete range of services for Business Valuation. No matter whether it’s for a new Startup business or for an established organization, we have the team of expert and a proven track record for serving our clients with accurate and detailed value insights.
- Comprehensive Solutions
- Regulatory Expertise
- Customized Advisory
- Swift Compliance
- Proven Trackrecord
- Confidential Service
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