ESOP: AMENDMENT IN SEBI GUIDELINES

The Securities and Exchange Board of India (SEBI) has said that it has noticed some listed entities framing their own employees benefit schemes wherein Trusts have been set up to deal in their own securities in the secondary market, which was not envisaged within the purview of SEBI (ESOS and ESPS) Guidelines 1999. In order to address the concerns over acquisition of shares by employee welfare Trusts from the secondary market, SEBI has decided to prohibit the listed entities from framing any employee benefit schemes involving acquisition of own securities from the secondary market.