Crisil gets shareholders’ nod for Esop, FII stake hike

Our Banking Bureau

Mumbai, Aug 3: The Credit Rating Information Services of India (Crisil) has received the shareholders’ nod for its employee stock option plan (Esop) and passed an enabling provision to hike foreign institutional investors (FIIs) stake up to 49 per cent.

The shareholders approved the proposal to increase the shareholding limit for FIIs to 49 per cent and for non-resident Indians and overseas corporate bodies (NRIs & OCbs) to 25 per cent in the paid-up capital, at the company’s annual general meeting (AGM) held on August 2, 2001.

The compensation committee of the board approved the allotment of 56,300 number options to the employees and the whole-time directors of Crisil and its subsidiaries. As per the Esop scheme, these options would be granted at the closing market price at which maximum number of shares were transacted on stock exchanges on August 2.

These options would vest with the employees after one year and are exercisable between August 3, 2002 and August 4, 2004. As the Esop has been granted at market price, there would not be any provisions in the profit and loss account of the company.

To the extent the options are exercised, the company would issue additional shares for cash. The plan has been designed in accordance with the requirements of regulations and guidelines of the Securities Exchange Board of India (Sebi) and the Income-Tax department. Crisil finance head, Rajesh Patel said: “The resolution to increase FII stake to 49 per cent is an enabling resolution. We are not talking to anybody at the moment.”