India, Feb. 23 -- A grant letter is a formal document issued by a startup for granting ESOPs to an employee. In this article, we will dive deep into understanding the details of the grant letter before signing them.

It might be unintentional but often some nuances and clauses that aren't discussed are taken for granted (pun not intended). Remember to check these in your grant letter:

Is the exercise price nominal or linked to the Fair Market Value (FMV)?

The exercise price of options can be anything that is chosen by the company while giving out the ESOP grant letter. Some startups choose the exercise price as a nominal amount (say INR 10) while some startups choose the exercise price based upon the last round valuation of the company....