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Web site on ESOP launched

Our Bureau

PUNE, Sept 13

TO create an awareness about the concept of Employee Stock Option Plan (ESOP), a Web site -www.esopdirect.com- has been launched by the Pune-based K&P Capital Services (KPCS).

The site would provide information about ESOP to corporate managements, executives, employees and the general public, Mr Shriharsh Ghate, Managing Director, KPCS, said.

Talking to Business Line, he noted that management could now know about concept of ESOP, how it worked, steps to ESOP, prevalent regulations relating to ESOP and how some companies presented ESOP-related disclosures in the annual results.

The `knowledge centre' on the site also provided new development in ESOP structures, expenses of companies, opinions and views of international experts, he said. The site is being further expanded to include ESOP administrator module which would facilita te online administration of ESOP for companies. Presently, the site had a client base of 40 companies, he said.

He pointed out that to give a sharper focus to its ESOP consulting activities, esopdirect.com has been spun off into a new company, effective from August 1, 2000. After the spin off of ESOP services, KPCS would focus on mergers and acquisitions and inves tment banking, he said.

He said KPCS was the exclusive Indian partner of M&A International Inc., which is a network of 40 partners in 30 cities. These partners are looking at cross-country mergers in the mid-market segment which has a turnover ranging from Rs. 50 to 200 crore, he said.

Mr Ghate noted that for employees who were existing ESOP holders, site provided `option valuer' which calculated value of options held by employee using the Black & Scholes model. Employees would have to key in expiry date and market price; the option va luer would calculate according to risk of return and volatility and notify employees about value of option.