Stock Options Spread Through India's Economy

According to an article in the Business Standard, information technology companies granted 61% of all stock options in India in 2003, but as other sectors started granting options, IT's portion of options has fallen to 25% in 2009-10. Among the 500 largest public companies in India, the financial sector grants as many options as IT firms, and the manufacturing sector grants more. The research by the firm ESOP Direct also indicates that Indian companies are increasingly setting up trusts to buy their shares on the open market. Rather than having the company issue new shares and dilute current shareholders, these trusts provide shares to employees when they exercise options.