Hyderabad:
The insurance regulator IRDAI has clarified that all Exercise of Employee Stock Options(ESOPS), at the time of grant, has to be reported to it preferably as part of the application filed under IRDAI (Remuneration of Chief Executive Officer / Whole-time Director / Managing Director of Insurers) Guidelines, 2016.
Also the exercise of ESOP is subject to various provision of existing Insurance Acts.
In case specific trust has been formed by an insurer for issuance of ESOPs to their employees, the issue of shares to such trust and exercise of option by one or more employees will also fall within the ambit of the Insurance Act, 1938 and Transfer of Equity Shares of Insurance Companies) Regulations, 2015.
The prior approval of the IRDA has to be sought before such exercise.where exercise of ESOP by one or more key employees of the comoany whether singly or jointly is beyond the threshold limit specified