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to a listed entity which if comes in the market can have a significant effect on its security prices, is treated as unpublished price sensitive information (UPSI).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...
Motivating the Employees inspite of Demonetisation blues The preceding year 2016 has given few gigantic reforms which are going to lay an impact worldwide. PM Modi’s surprise in the form of Note Ban in India is one of a major reform and whether this will prove to be a boon or a bane is still...
The term ESOP i.e. Employee Stock Option Plans is prevalent worldwide. The concept is no more restricted to a particular country or continent. It originated way back in 1956 in the USA. The first step was taken by the pioneer of ESOP, Mr. Louis Orth Kelso and from that time till now the 50-plus years...
Employee Stock Option Plans, as a tool to reward & retain key human talent has gained enormous acceptance and adoption worldwide. Enterprises are more than ever interested in adopting non-traditional methods for making payments to their Employees. Hence ESOPs have become the most popular and accepted form of Employee Compensation. Emergence of share-based payment as...
The Capital Market Regulator, SEBI, has cleared the air around certain grey areas that persisted under the SEBI (Share Based Employee Benefit) Regulations, 2014, which got notified on 28th October, 2014. SEBI, on 21st October, 2015, had issued a FAQ paper which clarified the ambiguities prevailing on part of Regulation 3(12) of the SBEB Regulations,...
The promulgation of new Insider Trading norms, which came into effect from May this year, created an air around the Employee Stock Option Plans. With regard to ESOPs, under the new Norms, there were a lot of restrictions, in terms of exercising/ selling/ contra trades/ pre clearance etc. Unlike the PIT Regulations, 1992, ESOPs were...
