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New Delhi: Disinvestment-bound Bharat Petroleum Corporation Ltd (BPCL) has opened its Employee Stock Purchase Scheme-2020 (ESPS) on September 28, but has kept a certain category of employees outside of its purview — those who have filed or file litigation before any court of law against the strategic disinvestment of BPCL either individually or as part of a collective, an internal document reviewed by PSU Watch showed. The document, dated September 28, said that the purpose of the BPCL ESPS scheme is to reward eligible employees and recognise their association to and loyalty towards the company.
"We are pleased to inform that with the decision of the Government of India for Strategic disinvestment of its entire shareholding in BPCL along with transfer of Management control, based on Government of India's approval, a Scheme to reward eligible employees by way of the offer of shares at a discount is being introduced," the document said. It added that the scheme is aimed at enabling eligible employees to become co-owners.
According to the document, there are only two categories of employees who are ineligible for availing the scheme. The first category bars employees who have been on cessation or suspension immediately before the offer date, ie September 28. And the second category refers to any employee who "individually or as a member of any collectives(s) has filed or files any litigation before any Court of Law in relation to 'Strategic Disinvestment of Govt. of India shareholding in BPCL."
The document said that if any employee is a party to any such litigation or complaint on the date of the offer, they would be entitled to apply for the ESPS scheme. But, the "allotment/transfer of shares will be made only if employee withdraws from such litigation or withdraws the above representation/complaint and submits proof thereof before 15.10.2020 or any extended date which the management may determine, at its sole discretion," the BPCL management said.
While stating employees will have to accept the offer while they are in service of BPCL, the document said that the option will have to be exercised either during initial offer period (between September 28 and October 31) or the extended offer period (between November 16 and January 31). Employees will also be able to exercise the "option of part acceptance of the shares offered within the initial Offer Period and the balance Shares in the Extended Offer Period, subject to not crossing overall limits available to each employee."
Those who accept the offer during the initial offer period will also be given a window between November 1 and November 15 to withdraw it. However, no withdrawals will be permitted by BPCL after the expiry of the extended offer period. The payment period for the purchase of shares will start from April 1, 2021 to April 15, 2021. The shares transferred by the ESPS Trust to the eligible employees under the ESPS scheme will have a "Lock-in Period of I (One) year from the date of transfer," said the document.
"Given the quantum of initial outflow towards cost of shares and perquisite tax, employees might require short/medium term loans to meet their funding requirements. In order to facilitate the same, discussions have been initiated with Banks for a competitive offering of 'Unsecured Personal Loans' to desirous employees," the document said.
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