📄 Article
✓ Link checked
India
Free
Intermediate
A company-secretary firm's plain-English breakdown of the mechanics behind your ESOP exit, grounded in the actual rule (the one-year minimum vesting under Rule 12(6) of the Companies Share Capital and Debentures Rules). It separates good-leaver from bad-leaver treatment and uses a real example of a Delhi SaaS firm extending its window to six months, so you know what a founder-friendly plan looks like and what to ask for before you resign.
Understanding Vesting, Exercise, and Lock-In in ESOPs (India)
From CSA & Associates by CSA & Associates 9 min read
- Indian law mandates a minimum one-year vesting period, so anything vested is legally yours to exercise inside the window
- Good-leaver vs bad-leaver clauses can forfeit even vested options if you exit in breach, so resign cleanly and serve your notice
- Exercise windows commonly run 30 to 180 days post-exit; a six-month window is generous and worth negotiating for while you are still inside
