ESOP Direct

ESOP Funding & Cashless exercise

ESOP Funding -

My ESOPs offers a unique online functionality for facilitating funding the employers to pay for exercise and perquisite tax.

This feature provides multiple funding opportunities extended by different fund houses for ESOP holders one can select one of his choice!! With the click of a button, ESOP holder will be directed to the Funding module, and will be guided to complete the funding transaction.

Cashless Exercise -

Very often employees are constrained from exercising the options because they do not have funds to pay for the exercise price and perquisite tax. Loans are either not available or the employee is not comfortable to borrow. Even if one were to borrow and fund the exercise, you are still exposed to the market risk (between the date of exercise and date on which shares hit your demat account) for more than a month. In a volatile market this period could wipe out your entire ESOP gains while you have paid the perquisite tax on a notional gain.

In another pioneering effort, we have designed India's first Cashless methodology, Zero C, which has been vetted by the legal experts and approved by the regulators.

Embedded in My ESOPs, Zero C, allows employees to exercise their options without bothering to arrange for the funds. Zero C, calculates the number of shares that are required to be sold to cover the exercise payout - sells those many shares - pays for the dues on the employee's behalf - transfers the remaining shares / cash to empoyee's demat / bank account.

The beauty of Zero C, is that the entire process (exercise to cash in hand) happens on-line and with a turnaround time of 5-7 days.

Compare this with the existing process which takes anywhere between 30 -45 days and you know the value Zero C, adds to your ESOP experience.