Several laws and regulations in India govern ESOP. The legal framework that governs the formulation of ESOPs in India are- Securities and Exchange Board of India (SEBI) Share-based employee benefits regulations of 2014. The companies (share capital and debentures) rules, 2014. Share and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines of 1999, and The companies act of 2013.