Sebi board meeting today. 5 key proposals on the agenda
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The Securities and Exchange Board of India (Sebi) will hold its board meeting today, where it may discuss whether startup founders should be allowed to retain employee stock options even after their companies go public. The agenda could also include permitting voluntary delisting of public sector companies, among other matters. Here's what to expect: 1) ESOP clarification: Under current regulations, startup founders must be classified as promoters at the time of filing IPO documents. Once labeled promoters, they are no longer eligible to receive Employee Stock Options (ESOPs). However, Sebi believes the existing rules do not clearly specify whether founders—who received ESOPs before being classified as promoters—can exercise their vested and unvested options after the IPO. Founders of many new-age tech startups often receive ESOPs instead of salaries in the early stages to align their interests with shareholders. But as these companie...