Section 12(2) in Companies (Share Capital and Debentures) Rules, 2014
(2)The company shall make the following disclosures in the explanatory statement annexed to the notice for passing of the resolution -(a)the total number of stock options to be granted;(b)identification of classes of employees entitled to participate in the Employees Stock Option Scheme;(c)the appraisal process for determining the eligibility of employees to the Employees Stock Option Scheme;(d)the requirements of vesting and period of vesting;(e)the maximum period within which the options shall be vested;(f)the exercise price or the formula for arriving at the same;(g)the exercise period and process of exercise;(h)the Lock-in period, if any ;(i)the maximum number of options to be granted per employee and in aggregate;(j)the method which the company shall use to value its options;(k)the conditions under which option vested in employees may lapse e.g. in case of termination of employment for misconduct;(l)the specified time period within which the employee shall exercise the vested options in the event of a proposed termination of employment or resignation of employee; and(m)a statement to the effect that the company shall comply with the applicable accounting standards.
