The board of Crisil has approved an employees' stock option plan (ESOP) at the rating agency's annual general meeting held today.
It has also approved a hike in foreign institutional investors' holding in the company's paid-up capital to 49 per cent and 24 per cent for non-resident Indians and overseas corporate bodies.
The compensation committee of the board has approved the allotment of 56,300 shares to employees, whole time directors of Crisil and its subsidiaries. If allotted, this will represent 0.90 per cent of the expanded capital of Crisil.
The options will be granted, as per the scheme, on the closing market price on the stock exchanges, at which maximum number of shares transacted on August 2, 2001.
The options will belong to the employees after one year and are excercisable between August 3, 2002 and August 2, 2004.
To the extent the options are exercised, the company will would issue additional shares for cash.
Since the ESOP has been approved on the market price, no provisioning will be made in the profit and loss account on this account.
