Sebi Notifies New Norms For Employee Stock Options (ESOP) Market regulator Sebi or Securities and Exchange Board of India has notified new ESOP or employee stock options regulations, including for purchase of shares by employee welfare trusts from the secondary market with adequate safeguards. Sebi has allowed companies to have employee stock option programmes where they can buy their own company shares subject to certain conditions. Employee stock options are a practice followed world over and the market regulator has outlined certain safeguards to improve the governance and transparency of the schemes and also address concerns regarding potential market abuse. Generally, in India, some companies count it (shares held by ESOP Trusts) in the promoter category and some companies count it in the public category. Some of the safeguards as outlined by the regulator include requirement of shareholders approval through special resolution for undertaking secondary market acquisitions; restrictions on sale of shares by trusts; at least six month holding period for shares acquired from secondary market. Read more at:
Posted on: Thu, 30 Oct 2014 06:42:42 +0000
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