| Step Name | Short Description | Authority |
|---|---|---|
| ESOP Scheme Approval | Passing a Special Resolution to approve the ESOP Scheme and filing MGT-14. | Shareholders |
| Option Exercise | Employee submits an exercise application and pays the exercise price. | Employee |
| Board Resolution | Meeting to approve the allotment of shares to employees who exercised options. | Board of Directors |
| Stamp Duty Payment | Paying state-specific stamp duty on the total value of shares allotted. | MCA V3 (State Govt) |
| Form Name | Trigger/Description | Countdown Deadline |
|---|---|---|
| MGT-14 | Filing the Special Resolution for the ESOP scheme (if not done earlier). | 30 Days from Scheme Approval |
| PAS-3 | Return of Allotment detailing the shares issued to employees. | 30 Days from Allotment |
| Share Certificates | Issuing physical certificates or crediting the Demat accounts. | 60 Days from Allotment |
Vesting is the period an employee must wait to earn the right to the shares; Exercise is the actual act of the employee buying those shares.
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