Section 12(8) in The Companies (Share Capital and Debentures) Rules, 2014
(8)(a)The option granted to employees shall not be transferable to any other person.(b)The option granted to the employees shall not be pledged, hypothecated, mortgaged or otherwise encumbered or alienated in any other manner.(c)Subject to clause (d), no person other than the employees to whom the option is granted shall be entitled to exercise the option.(d)In the event of the death of employee while in employment, all the options granted to him till such date shall vest in the legal heirs or nominees of the deceased employee.(e)In case the employee suffers a permanent incapacity while in employment, all the options granted to him as on the date of permanent incapacitation, shall vest in him on that day.(f)In the event of resignation or termination of employment, all options not vested in the employee as on that day shall expire. However, the employee can exercise the options granted to him which are vested within the period specified in this behalf, subject to the terms and conditions under the scheme granting such options as approved by the Board.
