MPS Limited has announced the grant of employee stock options under its ESOS 2023 scheme, marking a significant development in the company's employee compensation strategy. The Nomination and Remuneration Committee of the Board of Directors approved this grant.

ESOP Grant Details

The committee has approved the grant of 28,906 employee stock options to eligible employees under the MPS Limited-Employee Stock Options Scheme 2023. This grant represents a substantial allocation aimed at enhancing employee participation in the company's growth.

Pricing and Valuation Structure

The stock options have been granted at a price of ₹1,996.90 per share. This pricing follows a systematic approach based on market dynamics and regulatory requirements.

Vesting and Exercise Framework

The granted options follow a structured vesting and exercise schedule designed to align employee interests with long-term company performance. The vesting mechanism promotes employee retention while providing flexibility for option exercise.

Regulatory Compliance

The ESOP grant has been executed in full compliance with applicable regulations and disclosure requirements. The scheme operates under the framework established by securities market regulators and follows approved terms and conditions.

Key compliance aspects include:

• Adherence to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• Compliance with Regulation 30 and Schedule III requirements
• Alignment with SEBI guidelines
• Implementation of terms approved by shareholders under ESOS 2023

MPS Limited has made the requisite disclosures available on its website under the Investors section, ensuring transparency and accessibility for stakeholders. This ESOP grant represents MPS Limited's continued commitment to employee engagement and participation in the company's value creation process.

MPS has received a significant development in its legal dispute with the Securities and Exchange Board of India (SEBI) and other market intermediaries regarding custodial charges. The Delhi High Court has disposed of the company's writ petition with specific directions.

Court Proceedings and Outcome

The Delhi High Court disposed of MPS's writ petition against SEBI and market intermediaries regarding custodial charges. The court directed the respondents to consider the petition as a representation.

Key Relief Sought by Company

MPS had approached the court seeking comprehensive relief against what it termed as inequitable custodial charging policies. The company's primary demands included:

• Direction to create custodial charges based on trading value of shares rather than fixed amounts
• Revision of custodial charging structure for financially distressed companies
• Special consideration for companies where share value falls below nominal value
• Quashing of specific SEBI circulars dating back to 2005, 2011, and 2015
• Withdrawal of notices issued by NSE and BSE

Court's Direction and Next Steps

The court directed SEBI and other respondents to consider the writ petition as a representation and take appropriate decisions thereon, with intimation to the petitioner. This approach allows the regulatory authorities to review the company's concerns through administrative channels rather than judicial intervention.

Background of Dispute

The company had initially filed the writ petition challenging the existing custodial charge structure. MPS argued that the current policy is particularly burdensome for companies undergoing financial distress, especially where share values have declined significantly below their nominal values.

The company specifically contested SEBI circulars issued in January 2005, April 2011, and December 2015, claiming they violated fundamental principles under Articles 14 and 21 of the Constitution of India. Additionally, it sought withdrawal of notices issued by NSE and BSE.

Regulatory Compliance

MPS has maintained transparency throughout the legal proceedings, filing appropriate disclosures under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The court's direction provides the company an opportunity to have its concerns addressed through regulatory channels while maintaining the legal framework for further recourse if needed.