“Should my Company introduce Employee Stock Option Plan (“ESOP”) or not, is a common question we often receive from startup founders. Our answer is a resounding yes. When done correctly, ESOP is a powerful tool to supercharge growth, strengthen organizational performance, and create wealth for both founders and Employees. ESOP is an effective compensation tool....
SEBI (Issue of Sweat Equity) Regulations, 2002 (“Sweat Equity Regulations”) and SEBI (Share Based Employee Benefits) Regulations, 2014 (“SBEB Regulations”) were notified on September 24, 2002 and October 28, 2014 respectively. The Sweat Equity regulations provided framework for issuance of Sweat Equity shares by listed companies and the SBEB Regulations provided framework to regulate Employee...
Corporate Professionals has been in ESOP advisory for over 15 years and we have witnessed the popularity which the Employee Stocks Options and Employee Stock Plans has been gaining over the years. While Information technology companies started the trend of offering share options to employees in India, companies in several other sectors including Financial Services,...
In a significant move, the Government of India implemented a nationwide lockdown in a bid to contain the COVID-19 pandemic which has had a highly disruptive Economic Impact. The businesses are constrained from undertaking regular operations which has hit the revenue & sales, the production is negligible and with the restriction on logistics the entire...
The world today has been hit by the largest pandemic of the modern times, creating havoc in the economy with the looming uncertainty & fear. As Covid 19 has disrupted business continuity, a need has arisen to recalibrate business strategies and review cost outlays to sustain this contingency. These difficult times call for employers to...
Share Based Employee Compensation Plans have become increasingly common and form an important feature of remuneration packages for Directors, Senior Executives and other Employees all over the world. With the advent of globalization and establishment of MNCs in India, the Employee Stock Option Plans (“ESOPs”) trend has taken the employee compensation practices by wave. The...
INTRODUCTION: With uncountable litigations, news coverings, front page articles, documentaries, we would think that people would finally learn that insider trading is illegal. Yet it is seen, from time to time, that a bubble of scandals erupt which causes havoc in public consciousness leading to lack of faith in regulatory system and ultimately causing the...
Any information relating to a listed entity which if comes in the market can have a significant effect on its security prices, is treated as unpublished price sensitive information (UPSI). Any person who deals in the securities of any company on the basis of UPSI and makes personal gain by adversely affecting the interest of...
‘INSIDER’ & ‘CONNECTED PERSONS’ “Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars.” -Bernard Baruch INTRODUCTION Capital Markets have always been a major source for the corporate to raise funds in an efficient and speedy manner and for the Investor community, an important avenue...
The Finance Minister, Mr. Arun Jaitley, announced the Budget for 2017-18 on 1st of February, 2017. Under the Annexure III to Part B of Budget Speech, certain Additional Revenue Mobilisation (ARM) and Anti-abuse Measures in the area of Direct Taxes were announced. This included the proposal to restrict the exemption from long term capital gains...
