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ESOPs: Market regulator Sebi could tweak regulations for start-ups

Sebi does not want founders to own stock options if they have rights akin to those enjoyed by promoters, the sources with direct knowledge of the matter said

Sebi
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Reuters Mumbai
The Securities and Exchange Board of India (Sebi) is planning to change its rules to address concerns around founders and family members of tech or app-based start-ups owning shares under the employee stock ownership plan (ESOP), two sources told Reuters.

Sebi does not want founders to own stock options if they have rights akin to those enjoyed by promoters, the sources with direct knowledge of the matter said.

A decision in this regard could come sometime this year, the sources added.

Under present laws, promoters hold direct and indirect control over the company, advise, direct, and instruct the board of

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mar 17 2023 | 11:03 PM IST

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