ESOP Trustee / EWT

An ESOP is an employee benefit plan which offers employees an ownership interest in the organization. Companies offer ESOPs to employees with an objective to retain them for a longer-term, and also to make them the stakeholders of their company. Under an ESOP scheme, employees are granted options, which allows them to buy the stock at a rate below the prevailing market value of the stock or the employee is provided a certain percentage of his/her remuneration in stocks of the company.
In the Trust route, the company creates a Trust specifically for the purpose of running the ESOP scheme
The company grants a loan to the ESOP Trust to acquire shares. Since the ESOP Trust is not a business trust; therefore, the ESOP Trust on its own will not have funds to be able to acquire the shares from the secondary market. It is specifically created with the objective of issuance of ESOPs to the employees.
At the time of exercise by the employees, the ESOP Trust first acquires the shares from the secondary market/ company and then it transfers the shares in the name of the eligible employee.
When the employee leaves the company, they have an option of selling back the shares to the ESOP Trust or the secondary market.
Trust route is generally preferred by the listed companies.

Drafting & vetting of the draft Trust Deed and execution and registration the trust deed in coordination with company.
Ensure requisite shareholders’ approval for implementation of scheme/s and secondary acquisition of shares by the trust
Facilitate application for PAN/ TAN for the Trust, Opening / operating Bank Account, Demat Account, Broking Account, Custodian Account of the Trust
Coordinating with the compensation committee of the company and issue/cause to be issued grant letters to the eligible employees
Ensure compliance filing with SEBI (Share Based Employee Benefits) Regulations 2014 and listing requirements & filing of necessary statements / reports by the Company with SEBI, in-principle approval from stock exchange for issuance of shares to the trust through new issue, as may be applicable. Filing of necessary disclosures under SAST Regulations, if required
Assisting in getting the trust accounts audited, filing of tax returns & all tax compliance of the trust.

"Where expertise meets excellence in fiduciary services."

Decades of industry experience and specialized expertise in fiduciary services.

A wide range of trusted financial solutions tailored to meet diverse client needs.

Dedicated to delivering high-quality service with a focus on legal compliance and client satisfaction.

Utilizing cutting-edge technology and robust internal systems to ensure operational efficiency and value-driven outcomes.