An RSU (Restricted Stock Unit) is a grant of company shares that an employee receives for free once it vests. Unlike an ESOP, there is no exercise price to pay — the employee simply receives the shares on the vesting date. The trade-off is that the entire value is taxed as salary income at vesting.
Why it matters to you
RSU shares, once vested and credited to an employee's demat, can be sold in the unlisted market just like any other shares. For a buyer there is no practical difference between RSU-origin and ESOP-origin shares — what matters is that they are fully vested, settled, and identified by the correct ISIN.
Example: A senior employee's RSUs vested into 5,000 shares, which they later sold to fund a home purchase ahead of the company's IPO.