Mumbai, June 19 -- Market regulator, The Securities and Exchange Board of India (SEBI), has relaxed its rules around employee stock options (Esops) for start-up founders classified as promoters.
The decision will allow such founders to retain or exercise stock options granted at least one year prior to the filing of a Draft Red Herring Prospectus (DRHP), even after the company goes public.
Until now, Sebi regulations barred promoters from holding or being granted share-based benefits such as Esops. If a founder holding such benefits was designated as a promoter at the time of DRHP filing, they were required to liquidate these holdings before the IPO-posing challenges for many startups navigating the listing process.
"This provision has b...