An Employee Stock Purchase Plan (ESPP) is a company-sponsored programme that allows eligible employees to purchase shares of their employer's stock — typically at a discount to the current market price, ranging from 5% to 15% — through regular payroll deductions accumulated over an offering period. ESPPs are widely used by multinational corporations and Indian IT companies with global listings (such as Infosys, TCS, Wipro, and HCL Tech) to incentivise employee ownership, align workforce interests with shareholder value, and enhance compensation competitiveness. In India, the tax treatment of ESPP benefits is governed by the Income Tax Act — the discount received at purchase is taxable as perquisite income, and any subsequent gain on sale is subject to capital gains tax. For investors on Ventura Securities tracking technology and multinational companies, ESPP-related share sales — particularly in bulk during vesting windows — can create short-term selling pressure on the stock, making ESPP structure and offering period awareness useful for timing trading decisions.
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