MITCON Credensia administers Employee Stock Option Plans (ESOPs), Restricted Stock Units (RSUs), Stock Appreciation Rights (SARs), and other equity-based employee compensation schemes for listed and unlisted companies.
Our ESOP trustee services:
- Trust formation and registration
- Acquisition of company shares for the ESOP pool
- Allotment and vesting administration
- Exercise processing and share transfers
- Compliance with Companies Act 2013 and SEBI SBEB Regulations 2021
- TDS and tax compliance for employees
- Annual reporting to the company and trustees
- Buy-back and surrender administration
Scope of Service
- Vetting of the ESOP / EWT trust deed and scheme documents
- Acting as trustee of the Employee Stock Option Trust or Employee Welfare Trust
- Holding shares of the company in trust for the benefit of eligible employees
- Subscribing to or acquiring shares as instructed by the company / Nomination & Remuneration Committee
- Allotment / transfer of shares to employees upon exercise of options or vesting, as per the scheme
- Maintenance of trust accounts and books, and assistance with statutory and tax filings
- Compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and applicable Companies Act provisions
Frequently Asked Questions
What is an ESOP Trust?
An Employee Stock Option Plan (ESOP) Trust is a special-purpose trust set up by a company to administer its share-based employee benefit schemes. The trust holds shares of the company in trust for the benefit of eligible employees and allots them on exercise of options or on vesting, as per the scheme.
What is an Employee Welfare Trust (EWT)?
An EWT is a trust set up by a company to administer welfare benefits for its employees, which may include share-based schemes and other welfare initiatives. The trust holds and administers the relevant assets in line with the trust deed.
What is the role of the trustee?
The trustee holds the company's shares (or other assets) in trust for the benefit of eligible employees and administers the scheme — subscribing to or acquiring shares, allotting / transferring them on exercise or vesting, and maintaining trust accounts and books.
Which regulations govern ESOP / EWT trusteeship?
Principally the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 for listed companies, together with applicable provisions of the Companies Act, 2013 and relevant Income-tax provisions.
How are shares acquired by the trust?
Through primary subscription on issuance by the company, secondary acquisition from the market (where permitted), or transfer from existing shareholders — strictly in accordance with the scheme documents and applicable regulations.
How are options exercised through the trust?
On exercise of vested options by an eligible employee, the trustee transfers the corresponding shares from the trust to the employee against payment of the exercise price, as instructed by the company and per the scheme.
What documents are required to appoint MITCON Credentia as ESOP / EWT Trustee?
The ESOP / EWT trust deed, the relevant scheme document (ESOP / RSU / EWT scheme), board and shareholder resolutions approving the scheme, and the standard KYC documents of the company.
How does MITCON Credentia add value as ESOP / EWT Trustee?
Through experienced trust operations, accurate record-keeping, structured coordination with the Nomination & Remuneration Committee, and a service-oriented approach to scheme administration.
Have questions about ESOP / EWT Trustee?
Our team can walk you through structuring, fee arrangements, and compliance requirements.
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