Explained: Sebi’s new Esop norms for IPO-bound startup founders

June 19, 2025

, By The Economic Times

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Capital markets regulator Securities and Exchange Board of India (Sebi), in a board meeting on June 18, data-ga-onclick=”Inarticle articleshow link click#Tech#href” href=”https://economictimes.indiatimes.com/tech/startups/sebi-relaxes-esop-norms-for-ipo-bound-startup-founders/articleshow/121935832.cms” data-type=”tilCustomLink” target=”_blank”>greenlit multiple measures to enable “ease of doing business”. One of them was relaxing norms around employee stock options (Esops) for startups heading to Dalal Street.

Here is a look at the rules and the updates:

As per the new rules, Sebi is allowing startup founders to continue holding Esops even after their company lists on the stock exchange.

What was the old rule?

Previously, it was mandated that founders be classified as “promoters” when filing…

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We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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Explained: Sebi’s new Esop norms for IPO-bound startup founders

June 19, 2025

, Published By The Economic Times

Capital markets regulator Securities and Exchange Board of India (Sebi), in a board meeting on June 18, data-ga-onclick=”Inarticle articleshow link click#Tech#href” href=”https://economictimes.indiatimes.com/tech/startups/sebi-relaxes-esop-norms-for-ipo-bound-startup-founders/articleshow/121935832.cms” data-type=”tilCustomLink” target=”_blank”>greenlit multiple measures to enable “ease of doing business”. One of them was relaxing norms around employee stock options (Esops) for startups heading to Dalal Street.

Here is a look at the rules and the updates:

As per the new rules, Sebi is allowing startup founders to continue holding Esops even after their company lists on the stock exchange.

What was the old rule?

Previously, it was mandated that founders be classified as “promoters” when filing…

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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Previous News

Google Messages rolls out ‘Delete for Everyone’ feature and more: Report

Next News

Can Flipkart Strike A Fiscal Balance Ahead Of IPO?

The Economic Times

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