Page 58 - IC46 addendum

General Insurance Accounts (IC-46)

d. Books and records must be preserved for a
minimum period of eight years.

e. All are correct.

29. Find the incorrect statement with respect
of Employee Stock Option Plan:

a. ESOP is an employee compensation system
providing for sharing of corporate wealth and
profit by the employee.

b. Under the scheme employee is given an
option to buy shares of company at less than
the market price.

c. ESOP gives the right to employ to buy shares
at the specified price during a specified
period.

d. Employees may purchase shares out of their
own funds or borrow money from the
company to purchase shares.

e. Sebi has issued detailed guidelines in the
year 1998.

30. Find the incorrect statement:
a. Under employees stock option scheme

ESOS, the company grants option to
employees to buy existing shares.

Sashi Publications - Call: 033-22184184 /40078428 57

Copyright@ The Insurance Times. 09883398055 / 09883380339