Explain the provisions of pricing, vesting period and consequence of failure to exercise Employee Stock Option Scheme (ESOS).

Pricing of Employee Stock Option Scheme (ESOS) The company granting option to its employees pursuant to ESOS will have the freedom to determine the exercise price subject to conforming to the accounting policies as specified in the SEBI (Share Based Employee Benefits) Regulations, 2014. Vesting Period of ESOS There shall be a minimum vesting period of one year in case of ESOS. However, in case where options are granted by a company under an ESOS in lieu of options held by a person under an ESOS in another company which has merged or amalgamated with that company, the period during which the options granted by the transferor company were held by him shall be adjusted against the minimum vesting period. Consequence of failure to exercise option The amount payable by the employee, if any, at the time of grant of option, - may be forfeited by the company if the option is not exercised by the employee within the exercise period; or may be refunded to the employee if the options are not vested due to non-fulfilment of conditions relating to vesting of option as per the ESOS.