Why Conventional ESOPs May Soon Loose their Sheen!!
BACKGROUND On 15th January, 2015, the Capital Market Regulator, SEBI, came up with a new set of Regulations that overhauled a 23-year-old regulatory regime governing the arena of Insider Trading in the Capital Markets. Though the new Regulations seem to be more promising and equipped to ensure better compliance and enforcement, however at the same time the obligations attached, the sensitivity and penalty associated under the new insider trading norms have made it a reason to worry for the Corporates and particularly the Compliance Heads. THE GREY AREAS Ms. Mohini Varshney Assistant Vice President +919971673332 mohini@indiacp.com The new regulations have certain grey areas that need a lucid visualization. One of the most talked about ambiguity that has been pulled out of the discussions and interpretation is the ESOP ISSUE-their Grants/ Exercise. The erstwhile Insider Trading Regulations, 1992, had made a separate room to keep the ESOPs in place with the s