In a major relief to startup founders looking to go public, Sebi on Wednesday approved a proposal to allow them to retain ref=”dofollow” data-ga-onclick=”Inarticle articleshow link click#Tech#href” href=”https://economictimes.indiatimes.com/topic/employee-stock-options” target=”_blank”>employee stock options (ESOPs) granted at least one year prior to filing preliminary IPO papers.
Under the existing regulations, promoters are ineligible to hold or be granted share-based benefits, including ESOPs. If they hold such share-based benefits at the time of filing of ref=”dofollow” data-ga-onclick=”Inarticle articleshow link click#Tech#href” href=”https://economictimes.indiatimes.com/topic/draft-red-herring-prospectus” target=”_blank”>draft red herring prospectus (DRHP), they have been required to liquidate such benefits prior to the IPO.
This provision has been found to be impacting…
