Essentially, the employees of a company are entitled to the Employee Stock Option Plan (ESOP) but the Company sets a certain criteria to make employees eligible for the same. Benefits under the ESOP scheme can be claimed by-
- A permanent employee of the company working in or outside India
- A part-time or whole-time director of the company
- An employee of holding, subsidiary or associate company, whether in India or outside India
Promoters or Directors of the company holding more than 10 percent of its equity cannot take part in an ESOP.