When terms like “amendment” or “variation” appear in the context of an ESOP scheme, the natural question is Are we talking about a regulatory change, or a change in the actual terms of the Scheme? The answer lies in distinguishing between: Regulatory or administrative updates, and Material changes in scheme terms like eligibility, vesting, or...
As multinational organizations expand their global talent pool, Employee Stock Option Plans (ESOPs) have emerged as a key incentive mechanism—particularly where a foreign parent entity extends equity-linked benefits to employees of its Indian subsidiary. This model, while popular, raises important accounting, indirect tax (GST), and transfer pricing considerations that companies must navigate to ensure full...
In today’s world, businesses are no longer restricted by boundaries, particularly when it comes to talent and staff retention. Employee Stock Ownership Plans (ESOPs) are increasingly being offered to employees across borders to recruit, maintain, and reward global teams. However, the rules governing ESOPs vary from one another. If your firm operates in both India...
In FY 2024–25, SEBI introduced a series of impactful changes that will reshape how listed companies manage and disclose Employee Stock Option Plans (ESOPs) and other equity-based employee benefits. These updates aim to strengthen transparency, enhance investor confidence, and align with evolving corporate governance norms particularly relevant for companies preparing for IPOs or focused on...
BluSmart Mobility: Background and Relationship with Gensol: BluSmart Mobility, founded in 2019 by Anmol Singh Jaggi, Punit K. Goyal, and Puneet Singh Jaggi, emerged as India’s first integrated electric ride-hailing and EV charging platform. It rapidly scaled operations in Delhi-NCR, Mumbai, and Bengaluru, developing one of the country’s largest all-electric fleets, supported by partnerships with...
India’s startup ecosystem is witnessing a significant surge in Employee Stock Ownership Plan (ESOP) buybacks. In FY 2024–25, over 3,000 startup employees benefited from these programs, with companies repurchasing vested stock options worth more than ₹1,450 crore (~$170 million). This trend is reshaping how startups attract, retain, and reward talent while managing financial and strategic...
Employee Stock Ownership Plans (ESOPs) are a prevalent tool used by companies in both India and Singapore to attract, retain, and motivate employees by offering them a stake in the company’s ownership. However, the taxation of ESOPs varies significantly between these two countries, affecting both employers and employees. ESOP Taxation in India In India, ESOP...
The listed entities are now required to make additional disclosures relating to ESOPs on its Website. Here’s a closer look at the significant insertions: As per Regulation 46(2)(za) of the SEBI(LODR) [Third Amendment] Regulation, 2024: Listed entities shall disclose Employee Benefit Schemes documents in accordance with SEBI’s SBEB & SE Regulations, 2021, subject to the...
ESOP’s have become a very attractive tool for companies these days, say it may be an Unlisted company or Listed Companies or Start-up’s. Nowadays companies are using ESOP as a Compensation tool to retain, attract, motivate their employees, and create a platform for them to get a benefit of their long -term association with the...
Insurance Regulatory Development Authority of India (IRDAI) has also identified a crucial link between the roles of KMPs and the excessive risk-associated to their position in Insurers, similar to the term of the private sector banks. To address this, the IRDAI mandated the establishment of robust guidelines to have a Board-approved remuneration policy within the...
