- The Securities and Exchange Board of India (SEBI) has prohibited companies from acquiring shares form the secondary market under the employee stock option schemes till the employee stock option scheme (ESOS) and the employee stock purchase scheme (ESPS) are aligned with its new guidelines.
- It has also extended its timeline for companies to align their schemes in line with its guidelines.
- Under its new norms:
- Companies would have employee stock option programmes where they could buy their own company shares subject to certain conditions.
- ESOP Trust will be classified as a separate group of shareholding entities.
- Requirement of shareholders’ approval through special resolution for undertaking secondary market acquisitions
- Restrictions on sale of shares by trusts
- At least six month holding period for shares acquired from secondary market.
- Read at: http://www.thehindu.com/todays-paper/tp-business/sebi-clarifies-on-employee-stock-option-norms/article6156962.ece