(1) Subject to the provisions of these regulations, the ESOS shall contain the details of the manner in which the scheme will be implemented and operated.
(2) No ESOS shall be offered unless the disclosures, as specified by Board in this regard, are made by the company to the prospective option grantees.
Pricing.
17. The company granting option to its employees pursuant to ESOS will have the freedom to determine the exercise price subject to conforming to the accounting policies specified in regulation 15.
Vesting period.
18.(1) There shall be a minimum vesting period of one year in case of ESOS:
Provided that in case where options are granted by a company under an ESOS in lieu of options held by a person under an ESOS in another company which has merged or amalgamated with that company, the period during which the options granted by the transferor company were held by him shall be adjusted against the minimum vesting period required under this sub-regulation.
(2) The company may specify the lock-in period for the shares issued pursuant to exercise of option.
Rights of the option holder.
19. The employee shall not have right to receive any dividend or to vote or in any manner enjoy the benefits of a shareholder in respect of option granted to him, till shares are issued upon exercise of option.
Consequence of failure to exercise option.
20. The amount payable by the employee, if any, at the time of grant of option, -
(a). may be forfeited by the company if the option is not exercised by the employee within the exercise period; or
(b). may be refunded to the employee if the options are not vested due to non-fulfilment of conditions relating to vesting of option as per the ESOS.
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PART B: EMPLOYEE STOCK PURCHASE SCHEME (ESPS) Administration and implementation.
21. Subject to the provisions of these regulations, the ESPS scheme shall contain the details of the manner in which the scheme will be implemented and operated.
Pricing and lock-in.
22.(1) The company may determine the price of shares to be issued under an ESPS, provided they conform to the provisions of accounting policies under regulation 15.
(2) Shares issued under an ESPS shall be locked-in for a minimum period of one year from the date of allotment:
Provided that in case where shares are allotted by a company under an ESPS in lieu of shares acquired by the same person under an ESPS in another company which has merged or amalgamated with the first mentioned company, the lock-in period already undergone in respect of shares of the transferor company shall be adjusted against the lock-in period required under this sub-regulation.
(3) If ESPS is part of a public issue and the shares are issued to employees at the same price as in the public issue, the shares issued to employees pursuant to ESPS shall not be subject to lock-in.
PART C : STOCK APPRECIATION RIGHTS SCHEME (SARS) Administration and implementation.