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ESOP Exercise and Cap Table Management in Pune

Built for Hinjewadi, Kharadi and Baner product teams: we turn vested options into allotted shares and file PAS-3 with RoC Pune, every window on time.

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: Verify Credentials →

Covers: eligibility, exercise-price collection, FMV report, allotment, PAS-3, cap table.

Fees: Starting from INR 14,999 per year (Exl GST and Govt. Charges)

Key deadline: PAS-3 within 30 days of allotment.

FMV rule: merchant-banker report valid for 180 days before exercise.

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    What This Service Covers

    📌 TL;DR - ESOP Exercise and Cap Table Services at a Glance

    A Pune SaaS or product company opens an exercise window; we handle eligibility, exercise-price collection, the FMV report, board allotment, PAS-3 at RoC Pune within 30 days, demat credit and the SH-6 register plus cap-table refresh. Starting INR 14,999/yr.

    Picture a Rajiv Gandhi Infotech Park SaaS firm in Hinjewadi where two dozen engineers hit their annual exercise window the same month: vesting has to be reconciled grantee by grantee, the exercise money has to land through banking channels, and a single board allotment has to convert all of it into shares before anyone updates the register. That month of work, repeated each time options are exercised, is what this service runs for you.

    Across the Kharadi EON IT Park belt, Magarpatta, Viman Nagar and the Baner-Balewadi corridor, the slip is rarely the idea of exercising; it is the execution after allotment. A grantee can pay and receive shares, yet the PAS-3 return, the SH-6 entry and the live cap table fall out of step. When a Series A investor or a statutory auditor pulls the shareholding history, those gaps become findings. Patron Accounting closes the whole loop so the next Pune diligence round reads clean.

    ESOP Exercise and Cap Tables in the Pune Market

    Companies registered in Pune fall under the jurisdiction of the Registrar of Companies, Pune, which covers most of Maharashtra outside the Mumbai region. Every Form PAS-3 for shares allotted on exercise is filed against your Pune CIN on the MCA21 portal, so the allotment record, SH-6 register and cap table all have to tie back to the same RoC Pune filing history.

    The local exercise pattern reflects Pune's clusters. In the Hinjewadi and Magarpatta IT parks, larger product teams run scheduled annual exercise windows with high grant volumes, which makes batch eligibility checks and a single clean cap-table reconciliation the priority. In the Kharadi and Viman Nagar startup hubs, early-stage companies tend to exercise around a funding round or a secondary sale, so the FMV report timing against the 180-day window is the pressure point. Along the Baner-Balewadi tech corridor, founder-led teams often discover an out-of-date register only when an investor's diligence checklist arrives.

    Because Pune sits a short distance from Mumbai's merchant-banker and Category I valuer pool, FMV reports are usually quick to source, but the 30-day PAS-3 clock still runs from the board allotment date, not from when the valuation lands. We schedule the FMV, the board resolution and the filing as one sequence so a Pune exercise window never drifts past the deadline.

    What Is ESOP Exercise and Cap Table Management

    Two separate jobs sit behind the phrase. The first is the exercise event itself: a Kharadi product company or a Chakan-MIDC manufacturer opens a window, vested options are paid for, and the board allotment turns them into real shares. The second is the cap table: the running ledger of who now holds what, kept accurate after every such event.

    For a Pune company both jobs run on one fixed chain, and the order matters: eligibility check, exercise-price collection through banking channels, the FMV report, the board allotment resolution, demat credit, the PAS-3 filing at RoC Pune, then the SH-6 register and cap-table refresh.

    None of this is scheme design. Drafting the ESOP pool and passing the enabling special resolution is a one-time setup; this page is about the recurring execution a Hinjewadi or Magarpatta team repeats every single time its engineers choose to exercise.

    Key Terms for ESOP Exercise and Cap Table:

    • Exercise: the employee paying the exercise price to convert vested options into shares.
    • Allotment: the board resolution issuing the shares, which starts the 30-day PAS-3 clock.
    • FMV report: the merchant-banker valuation fixing the share value, valid 180 days before exercise.
    • Cap table: the live record of who owns how many shares and options after each event.
    APL-05 ESOP Exercise and Cap Table
    Filed under Form PAS-3 (30 Days)

    Who Needs This Service

    If a window is open or about to open, the work below has to happen on the clock. The Pune teams that lean on us most are:

    • Product and SaaS companies in Rajiv Gandhi Infotech Park (Hinjewadi) and the EON IT Park belt at Kharadi, where annual windows carry high grant volumes and need batch eligibility checks plus one clean reconciliation.
    • Early-stage startups in Viman Nagar and along Baner-Balewadi that exercise around a funding round or a secondary, where the FMV timing against the 180-day window is the squeeze.
    • Chakan and MIDC manufacturers issuing shares as senior engineers and plant leadership exercise vested options.
    • Founders and lone HR-CS leads tidying an out-of-date cap table before a Pune investor's diligence checklist lands or RoC Pune raises a query.

    Statutory anchor: for any Pune-registered company, shares allotted on exercise under Section 62(1)(b) of the Companies Act, 2013 need a Return of Allotment in Form PAS-3 at RoC Pune within 30 days of allotment, and the unlisted-share FMV must rest on a Category I Merchant Banker report no older than 180 days under Rule 3(8)(iii) of the Income Tax Rules.

    Our Exercise and Cap Table Services

    ServiceWhat We Do
    Eligibility VerificationGrantee by grantee, we reconcile vested quantity and the open window to the scheme and grant letters, so a 20-engineer Hinjewadi batch clears before a single share is allotted.
    Exercise-Price CollectionWe collect the consideration through banking channels and hold the remittance trail audit-ready for the next RoC Pune or VC review.
    FMV Report CoordinationWe source the Category I Merchant Banker valuation from the nearby Mumbai-Pune pool and watch its 180-day clock so it never lapses mid-window.
    Allotment and PAS-3We draft the board allotment resolution, then file Form PAS-3 at RoC Pune well inside the 30-day window the resolution starts.
    Demat CreditWe instruct the depository so each engineer's allotted shares reach their demat account, on-site in Pune or working remotely.
    Register and Cap Table UpdateWe post each event to the SH-6 register and re-cut the cap table the same day, so SH-6, PAS-3 and the live ownership view always tie out.
    Our Process

    How an Exercise Event Works in 6 Steps

    From a Kharadi EON IT Park annual window to a Chakan plant liquidity event, here is the exact sequence we hold each Pune exercise to - eligibility through cap table, every filing inside its deadline.

    Step 1

    Verify eligibility

    We check vested quantity, the open window and grantee eligibility against the scheme and grant letters.

    Vested quantity Window check
    Eligibility Verified 01
    Step 2

    Collect the exercise price

    We take in the exercise price over banking channels and record the consideration cleanly.

    Banking channel Evidenced
    Rs
    Price Collected 02
    Step 3

    Fix the FMV

    We obtain the merchant-banker FMV report within 180 days, or use the exchange price for listed shares.

    180-day validity Cat I banker
    FMV Fixed 03
    Step 4

    Allot the shares

    We pass the board allotment resolution; that date, not the exercise form, starts the 30-day PAS-3 clock.

    Board resolution Clock starts
    Shares Allotted 04
    Step 5

    File PAS-3 and credit demat

    We file the Return of Allotment within 30 days and instruct the depository for demat credit.

    Within 30 days Demat credit
    PAS-3
    PAS-3 Filed 05
    Step 6

    Update register and cap table

    We post the exercise to the SH-6 register and refresh the cap table for the new shares.

    SH-6 register Cap table
    Records Updated 06

    Documents Checklist

    Have these ready before a window opens and a Pune exercise runs without stalling:

    • The ESOP scheme document and the individual grant letters that fix eligibility and vesting.
    • Each employee's exercise notice and proof the exercise price came through banking channels.
    • A Category I Merchant Banker FMV report dated inside the 180-day window before the exercise date.
    • The board allotment resolution and the supporting allotment list.
    • Demat account details for every grantee receiving shares.
    • The current SH-6 register and the existing cap table to reconcile the new shares against.

    The one date Pune teams get wrong

    A fast-scaling Baner or Hinjewadi company often assumes the 30-day count starts when the employee signs the exercise form. It does not - it starts on the board allotment date. That single mix-up is the usual reason a window slips past PAS-3 and lands the company in Section 454 adjudication.

    Common Challenges and How We Solve Them

    ChallengeImpactHow Patron Accounting Solves It
    A Baner startup reads the 30-day clock from the wrong dateSection 454 adjudication and late feesWe anchor the clock to the board allotment date and file well inside 30 days.
    FMV report has aged past 180 days by the exercise dateInvalid valuation and tax exposureWe schedule a fresh merchant-banker valuation so it stays inside the 180-day window.
    Cap table drifts out of sync after allotmentDiscrepancy surfaces in audit or VC due diligenceWe reconcile the cap table and SH-6 register the moment each event closes.
    Registered-valuer and merchant-banker figures disagreeScrutiny risk across MCA and tax filingsWe align both valuations up front so the numbers tie out.

    Exercise and Cap Table Fees

    Fee ComponentAmount
    Patron Accounting Professional FeesStarting from INR 14,999 per year (Exl GST and Govt. Charges)
    Scope of the annual feeEligibility checks, allotment, PAS-3 filing and cap-table updates across exercise windows in the year
    Merchant-banker valuation feesBilled at actuals
    ROC chargesBilled at actuals

    All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

    Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

    Get a free ESOP Exercise and Cap Table consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

    Time Taken

    StageEstimated Timeline
    Exercise event with documents in order, through allotment5 to 7 working days
    PAS-3 filingWithin the 30-day statutory window
    Demat creditAround T+2 after allotment

    We schedule the FMV report ahead so the 180-day validity never lapses mid-window. Lining up the valuation and allotment sequence in advance keeps every filing on time and the cap table accurate.

    Key Benefits

    Why Use a Professional

    PAS-3 on time

    Filed with RoC Pune inside 30 days, so no Section 454 adjudication or late fees.

    Fresh FMV

    Merchant-banker FMV kept fresh, always inside its 180-day validity.

    Reconciled records

    SH-6 register and cap table reconciled the moment each window closes.

    Aligned valuations

    MCA and income-tax valuations aligned, so Pune diligence finds no red flags.

    Trusted by Startups and Growth Companies

    10,000+ Businesses | 4.9 Google Rating | 50,000+ Documents Processed | 15+ Years

    Patron Accounting LLP is a CA and CS firm with 15+ years processing share allotments, ROC filings and cap-table updates for Indian companies.

    With offices in Pune, Mumbai, Delhi and Gurugram, Patron Accounting serves businesses across India, both in-person and remotely.

    Exercise-Event Deadlines at a Glance

    A Pune product company can run two or three windows in a single year, and each one re-starts the same chain of dates. Read the table top to bottom as one timeline: it is exactly the order we lock a Hinjewadi, Kharadi or Magarpatta event into, from the FMV validity check through to the same-day cap-table refresh.

    StepTrigger / BasisTimeline
    FMV reportBefore exerciseValid within 180 days
    Board allotmentAfter price collectedPer exercise window
    PAS-3 filingFrom allotment dateWithin 30 days
    Demat creditAfter allotmentAround T+2
    Register / cap tableAfter allotmentImmediately

    Legal and Compliance Framework

    Every Pune ESOP exercise answers to two regulators at once - the MCA on the company-law side and the Income Tax Department on valuation - and a clean window keeps both satisfied with one set of records. Here is the framework a Hinjewadi or Kharadi filing is held to.

    Allotment filing: when a Pune company allots shares on exercise of options under Section 62(1)(b) of the Companies Act, it must file a Return of Allotment in Form PAS-3 with RoC Pune within 30 days of allotment.

    Valuation: for unlisted shares, the FMV must rest on a Category I Merchant Banker report not older than 180 days before exercise under Rule 3(8)(iii) of the Income Tax Rules; the Companies Act allotment uses a registered valuer, so companies usually align both.

    Register: each exercise is recorded in the Form SH-6 Register of Employee Stock Options, and the cap table is updated to reflect the new shares.

    Non-compliance: failure to file PAS-3 attracts ROC late fees and adjudication under Section 454, and can call the validity of the share issue into question during audit or due diligence.

    Authoritative sources: the Ministry of Corporate Affairs (PAS-3, allotment), the Companies Act and Rules, the Income Tax Department (Rule 3(8) FMV), and ICSI (secretarial standards).

    What happens when an employee exercises ESOPs?

    On exercise, the employee pays the exercise price to convert vested options into shares. The company verifies eligibility, fixes the FMV, passes a board allotment resolution, files Form PAS-3 within 30 days, credits the shares to the employee demat account, and updates the SH-6 register and cap table. The difference between FMV and exercise price is also taxed as a perquisite.

    When must PAS-3 be filed after an ESOP exercise?

    Form PAS-3, the Return of Allotment, must be filed with the Registrar of Companies within 30 days of allotment. The 30-day clock runs from the date the board passes the allotment resolution, not from the date the employee submits the exercise form. Conflating these dates is the most common reason companies miss the window and face Section 454 adjudication.

    Which filing is required after an ESOP exercise?

    After exercise, the board passes the allotment resolution, and Form PAS-3 must then be filed with the RoC within 30 days. The shares are credited to the demat account, and the SH-6 register and cap table are updated. The FMV report must be dated within 180 days before the exercise.

    How long is the FMV report valid for an exercise?

    For unlisted shares, the Category I Merchant Banker FMV report must not be older than 180 days before the exercise date, under Rule 3(8)(iii) of the Income Tax Rules. If the report lapses mid-window, a fresh valuation is needed. For listed shares, the FMV is the average of the opening and closing price on the exercise date.

    Where is PAS-3 filed for a company registered in Pune?

    For a company with a Pune CIN, Form PAS-3 is filed online on the MCA21 portal against the Registrar of Companies, Pune, which covers most of Maharashtra outside the Mumbai region. There is no physical visit. The allotment record, SH-6 register and cap table must all reconcile to the same RoC Pune filing history so nothing drifts during an audit or funding diligence.

    Do Pune IT-park startups need a fresh FMV for each exercise window?

    Yes. For unlisted shares the Category I Merchant Banker FMV report must be dated within 180 days before the exercise date, so a Hinjewadi or Kharadi company opening a new annual window usually needs a fresh valuation each time. Pune's proximity to Mumbai's valuer pool makes the report quick to source, but the 30-day PAS-3 clock still runs from the board allotment date, not from when the FMV lands.

    When should the cap table be updated?

    The cap table should be updated immediately after every allotment so that it matches the SH-6 register and the PAS-3 filing. To avoid any mismatch during due diligence or an audit, we reconcile it after each exercise event.

    Can Patron handle exercises for a Pune company with remote employees?

    Yes. The entire exercise sequence, from eligibility verification to PAS-3 filing with RoC Pune and the cap-table update, runs digitally, so it works whether your engineers are in the Baner-Balewadi corridor or working remotely from outside Pune. We coordinate the board allotment, exchange documents online and credit shares to each employee demat account, then reconcile the SH-6 register and cap table after every window.

    Quick Answers

    • Which is the key filing on ESOP exercise? The key filing is Form PAS-3, the Return of Allotment, filed with the Registrar of Companies.
    • What is the deadline to file PAS-3? Form PAS-3 must be filed within 30 days from the allotment date.
    • How long is the FMV valuation valid before exercise? For unlisted companies, the fair market value is valid for 180 days before the exercise date.
    • When are the shares credited in demat? The shares are typically credited to the demat account around T+2 after allotment.
    • Which records are updated after allotment? The SH-6 register of ESOPs and the company cap table are both updated.

    Why Timing Matters

    The PAS-3 window is just 30 days from allotment, and the FMV report expires at 180 days. An exercise window can open at short notice around a liquidity event. Line up the FMV and the allotment sequence in advance, so filings land on time and the cap table never drifts.

    Run Your Exercise Windows Cleanly

    An ESOP exercise looks simple but carries a tight chain of deadlines: FMV validity, allotment, PAS-3 within 30 days, and an accurate cap table.

    Patron Accounting LLP, a CA and CS firm with 15+ years of allotment and ROC-filing experience, runs the full exercise sequence and keeps your register and cap table reconciled, so every exercise window closes clean.

    Book a Free Consultation - No Obligation.

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    Content Created: 24 June 2026  |  Last Updated:  |  Next Review: 24 September 2026  |  Reviewed By: CA & CS Team, Patron Accounting LLP

    This page is reviewed every six months for changes to the PAS-3 form or timelines, Rule 3(8) FMV validity, registered-valuer or merchant-banker rules, demat or PAS-6 procedure, and MCA e-form revisions (Tier 2 freshness).