Assocham asks Sebi to extend deadline for ESOP norms

Industry body Assocham has sought more clarity on market regulator Sebi's norms for employee welfare schemes and asked extension of deadline set for companies to comply with the amended rules.

"To avoid the confusion created by the Securities and Exchange Board of India (Sebi) recent guidelines on (Employee Stock Option Scheme and Employee Stock Purchase Scheme) ...Assocham has suggested extension in the date for final disposal of shares held beyond June 30 this year," an Assocham statement said.

"...Meanwhile prescribe that any currently available shares shall only be used for an aligned schemes and not otherwise sold/dealt with in the secondary market," it added.

Last month, Sebi had introduced norms that barred employee welfare schemes and trusts from purchasing the shares of their own firms from the secondary market. The market regulator had directed firms to comply with the guidelines by June 30, 2013.

Assocham in a note to Sebi has sought the regulator's clarification regarding certain lock-in norms for these schemes, among others.