Security Agency Guidelines:
12. Following conditions will apply to State run ESM Corporations: -
  1. It should be approved by respective State / Union Territory Government.  An approval certificate duly signed by the Chief Secretary of the state will be necessary for the ESM Corporation to be empanelled as DGR security agency, based on which the ESM corporation will be eligible for DGR sponsorship all over the Country.
  2. The Chairman and all other functionaries of the corporation should ONLY be retired commissioned officers of Armed Forces who qualify to be ESM (O).  There should be a minimum of three Directors.
  3. The officers can hold office only till they attain 65 years of age.
  4. They should not be employed elsewhere.
  5. 100% ESM only will be employed by State run ESM Corporation within their respective states on security jobs like Security Guards, Gunmen and Security Supervisors. Outside their parent state they can employ 90% ESM. On other miscellaneous jobs when ESMs are not qualified/available, dependents of ESM be employed on priority.
  6. A clause will be incorporated in Memorandum of Association stating that each ESM employee will be issued a share certificate after 3 months of commencement of work as laid down in these guidelines.  Such a share will be retained by the ESM till he is employed with the corporation. The share will be sold back to the ESM Corporation at the current value when he leaves the corporation.  Refer Appendix ‘C’.
  7. ESM Corporation will be sponsored to a PSU for a period of two years initially which can be further extended by another two years based on satisfactory performance. At the end of the four years, DGR at its discretion may allow state ESM corporations for another four years at that location if there is a bulk requirement of security. Under no circumstance will the corporation be allowed to continue beyond eight years at that location.  Following this three other Security Agencies in waiting on the roster will be sponsored.
  8. Persons employed in other government/semi-government departments cannot hold any executive appointment including the Board of Directors of the ESM Corporation. Secretary/Director of the concern State RSB cannot concurrently hold any office in the State ESM Corporation and vice versa.
  9. Any dispensation on any of the above issues will be on the DGR’s approval/concurrence only.