SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999
15. Options outstanding at Public Issue
15.1 The provisions of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines prohibiting initial public offering by companies having outstanding warrants and financial instruments shall not be applicable in case of outstanding option granted to employees in pursuance of ESOS.
15.2 If any option is outstanding at the time of an initial public offering by a company, the promoters’ contribution shall be calculated with reference to the enlarged capital which would arise on exercise of all vested options.
15.3 If any options granted to employees in pursuance of ESOS are outstanding at the time of initial public offering, the offer document of the company shall disclose all the information specified in clause 12.1.