n NISM Certifications
X NISM Series X
Medium

From which date is the holding period considered for shares acquired under Employee Stock Option Plan (ESOP)?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Date of entitlement to subscribe

  2. B

    Date of exercise of option

  3. Date of allotment of shares

    Correct answer

  4. D

    Date of announcement of ESOP

Why this is the answer

The holding period for ESOP shares begins from the date of allotment, not from exercise, for capital gains purposes.

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