Tango Trading Ltd. is a public company which has its equity shares listed on NSE. The Company wants to implement Employee Stock Option Plan (ESOP) for its employees. ESOP Plan will be operated through a trust in accordan

A company can issue shares through employee stock option scheme (ESOP) to its permanent employees (India or outside India) a director whether whole time director or not (excluding independent director) an employee as defined in clauses (a) or (b) of a subsidiary, in India or Outside India or of a holding company but excluding following: An Employee who is a promoter or a person belongs to the promoter group A director who either himself or through his relative or through anybody corporate, directly or indirectly holds more than 10% of the outstanding equity shares of the company. In the given case, Irfan holds more than 10% of stake in Tango Trading Ltd. Hence, he is not eligible to participate in the ESOP scheme.