Banks will be able to give loans to Indian companies for acquiring the entire equity stake or a controlling part of it in domestic or foreign firms as strategic investment that creates long-term value rather than for short-term financial restructuring if the Reserve Bank of India's (RBI's) draft circular, issued on Friday, comes to fruition.
The Enforcement Directorate on Friday withdrew its summons to a senior lawyer for reportedly giving legal advice in a case after the Supreme Court Advocates on Record Association (SCAORA) wrote to the chief justice of India for taking note of the action.
India's second largest IT company Infosys' board has approved the grant of stock incentives or Employee Stock Option Plans (ESOPs) worth over Rs 51 crore to CEO and MD Salil Parekh. These stock incentives are under various heads including ESG and equity, and add up to over Rs 51 crore.
The sales of company shares by 5 senior executives have come under scrutiny as IndusInd shares declined over 30 per cent due to losses incurred by from its derivatives exposure.
In a relief for foreign firms giving loans to Indian subsidiaries, tax authorities have said goods and services tax (GST) will not be imposed on them, subject to some caveats. Additional fees, commissions, or related payments - over and above the amount charged as interest - on these loans will attract GST at 18 per cent, the Central Board of Indirect Taxes and Customs (CBIC) has said.
IndiGo has proposed to issue 185,000 shares worth to Chief Executive and Whole-time Director Ronojoy Dutta under the company's Employee Stock Option Plan (ESOP). The shares that can be exercised at a price of Rs 765 apiece is worth Rs 14,15,25,000. Dutta can exercise 25 per cent of that at the end of first year, 35 per cent at the end of second year, and the remaining in December 2023 when his current tenure ends.
IT firm Tech Mahindra on Monday said it will allot 45,000 equity shares under its employee stock option plan.
Mastek Ltd allotted 70713 shares under an employee stock option plan.
Infosys Technologies Ltd allotted 4059 equity shares under an employee stock option plan.
Associated Cement Companies Ltd allotted 10,700 shares under a employee stock option plan.
Digital Globalsoft Ltd allotted 5,000 equity shares of Rs 10 each an employee stock option plan.
According to an analysis by governance firm Institutional investors Advisory Services, in Indian companies, the salaries of professional managers are much lower than those of their counterparts related to the companies' owners.
UTI Bank Ltd allotted 900 equity shares at Rs 38.63 to two employees under an employee stock option plan.
Mascot Systems Ltd allotted 600 equity shares of par value of Rs 4 per share under a employeesÂ’ stock option plan.
Geometric Software Solutions Company Ltd granted 73524 options under an employee stock option plan.
Don't sell the shares immediately after you get possession. It might translate into tax liability, if not held for one year or more.
Digital Globalsoft Ltd allotted 300 shares of Rs 10 each to the employees who have exercise their options under the company's employee stock option plan.
Restricts buying by schemes from secondary market.
Digital lobalSoft has allotted 10,950 equity shares of Rs 10 each under ESOP.
Three days after announcing the reinstatement of the variable portion of staff salaries, Mahindra Satyam (earlier, Satyam Computer Services) has begun re-introducing other benefits, including employee stock option plans (ESOPs), beside giving promotions and salary hikes across different bands (grades).Mahindra Satyam, now treading a recovery path after it was hit by a big scandal involving its top management, had withdrawn variable pay in April this year.
Esops, which give employees a stake in the ownership of the company, are provided by the company to employees to boost their motivation and loyalty.
With the stock market nearing its all-time high, the best way out is to sell them in tranches.
Earlier this year, the Union Cabinet gave the management of state-run companies the freedom to decide on divesting their subsidiaries. However, the very next day a meeting was held at the top level of the Government of India, for the presentation of proposals for more autonomy for state-run companies. Interestingly, no chiefs of any of these companies were invited. It is a problem that will stare the government in the face with the state-owned banks too, as talks have again begun for inviting strategic investments in these companies.
"We have written to all the companies in which we have nominee-directors, asking them not to give Esops," said LIC managing director D K Mehrotra. He said there were more than 100 companies in which LIC had nominee-directors.
The board has approved the allotment of the shares, under the employee stock options plans of the company, Satyam said in a filing to the Bombay Stock Exchange. After the allotment, the paid-up share capital of the company stood at Rs 195,35,94,874 up from Rs 195,34,44,694, the filing added.
Finance Minister P Chidambaram on Wednesday announced that the Permanent Account Number (PAN) to be made sole identity for participants in the security markets to strengthen capital market.
The Life Insurance Corporation has decided not to nominate any retired employee as a director on the board of the almost 90 companies in which it has equity or loan exposure.
48 companies have given stock options since Budget day.
The Institute of Chartered Accountants of India has offered technical information for drafting the rules for valuing employee stock options for calculating the fringe benefit tax.
Minimum Alternate Tax (MAT) has been extended to income in respect of which deduction is claimed by companies under Section 10A & 10B of the Income Tax Act.
If companies recover the fringe benefit tax on employee stock options from the beneficiaries, does it still make sense for employees to go for them?
The Central Board of Direct Taxes on Tuesday notified the norms for valuation of employee stock option plans (ESOPs) for calculating fringe benefit tax (FBT). The rules will take effect from April 1, 2008, and apply from assessment year 2008-09. The notification said the value of stock options of listed companies would be the listing value - the average of opening and closing price - on the day the options were vested with the employee.
The guidelines on the valuation of employees' stock option plans (ESOPs) for calculating fringe benefit tax (FBT) will be issued by September 8.
The Securities and Exchange Board of India has proposed changes in revised guidelines for employees stock option plans and stock purchase scheme to allow companies to obtain advance listing approval.
If the valuation norms are not announced by then, the due date for paying advance fringe benefit tax (FBT) on ESOPs is likely to be extended beyond September 15.
Technology start-ups that got listed in the last few quarters reported a hit to their December-quarter (Q3FY22) profitability due to higher marketing and employee costs. While fintech firms Paytm and PB Fintech saw their losses widen by 45 per cent year-on-year (YoY) to Rs 778 crore and 55 per cent to Rs 295 crore, respectively, food delivery company Zomato remained in the red despite narrowing its net loss by 81 per cent to Rs 66 crore. Meanwhile, online fashion and beauty products seller Nykaa saw its net profit drop 59 per cent to Rs 28 crore in Q3FY22.
Like the rest of your income, ESOPs too can yield more, if invested in the correct way.
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