ESOP Direct

ESOP Trustee and Trust Management

Several Companies administer their ESOP through trusts.  It makes imminent sense in some situations to implement ESOP through a trust route particularly for implementing cashless exercise and sourcing of shares through market purchase. Implementing cashless exercise particularly eases option exercises by foreign nationals. For Companies following the trust mode, we provide a full range of services where we act as trustees and also provide trust management services.

Our service offerings            

·                        Act as ESOP Trustees  

-               To operate Bank, Demat and Broking accounts

-               Purchase shares from market or primary issue from company based on grant of options to employees, allotment of shares to employees based on options exercised

-               Responsible for statutory compliances, insider trading compliances

·                        Provide Trust Management Services –

-               On-line set up of trust on My ESOPs – Access to Company to view status of share transactions, accounting reports, bank account details and minutes of meetings

-               Registration of trust

-               To obtain PAN// TAN for trust

-               Opening and managing bank, demat and broking account as per instructions received from the trustee

-               Purchase shares from market or primary issue from company based on grant of options to employees, allotment of shares to employees based on options exercised based on instructions received from trustees, selling shares and remitting funds to employees based on cashless exercise transactions.

-               Maintaining and finalization of accounts, conducting audit, maintaining statutory records.

-               Insider Trading compliances, tax filings

-               Conducting meetings of the trust

-               Periodic reporting to the Company , reconciliations of demat and bank accounts

-               Help desk for employees

Process

We take care of end-to-end responsibility for your ESOP Trust. All critical processes and activities are taken care of by our experienced team. The Corporate representatives (Process owners at the customer's end) are given separate Management access based on their role and hierarchy, which allows them access to trust information and reports. We assign dedicated resources to client to ensure smooth interaction and resolution of open issues and we deliver to the agreed service levels.

                                                                                                       
Technology

The  ESOP Trustee Services is offered using our proprietary web based platform My ESOPs. My ESOPs is hosted in our dedicated servers at state of the art data centres. To ensure safety & security of clients confidential data/we follow industry best practices in

·         Disaster Recovery & Business Continuity

·         Information and Data Security controls

·         Ongoing vulnerability and security testing by 3rd party expert agency

·         SSL certified authorization review process



Delivery Model for Trust Management

We undertake the entire management and administration of the ESOP Trust . The only involvement of the customer is to provide adequate funding of the Trust as and when required and approve acquisition of shares (in case secondary shares are to be used). We take care of the rest.

Why should you outsource your Trust Management

Regulations specify that trustees should be independent professionals- Promoters/ senior management cannot act as trustees.

·         Independent Trustees:  KP Trustee and Capital Services is an independent Company with no conflicting business interests

·         Professional team – dedicated team of qualified accountants/ lawyers and company secretaries to handle trust functions

·         Proven track record in management of ESOPs – Trust management is an extension of Plan management service offering

·         Seamless transition for cashless – Structured process and system to communicate with employees and guide them through