what is the difference between employee stock option scheme (ESOS) and employee stock purchase scheme (ESPS)?

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Solution

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Basis of Difference Employees Stock Option Scheme Employees Stock Purchase Scheme

Meaning

In this scheme company provides right (not an obligation) to whole time directors, officers or employees to purchase the shares at a predetermined price at future date In this scheme shares are offered to participating employees as a part of public issue or otherwise

Vesting Period

Option can be exercised after a specified vesting period
(time period after which the option can be exercised) Shares can be purchased on the date of purchase

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Basis of Difference	Employees Stock Option Scheme	Employees Stock Purchase Scheme
Meaning	In this scheme company provides right (not an obligation) to whole time directors, officers or employees to purchase the shares at a predetermined price at future date	In this scheme shares are offered to participating employees as a part of public issue or otherwise
Vesting Period	Option can be exercised after a specified vesting period (time period after which the option can be exercised)	Shares can be purchased on the date of purchase