SEBI restricts selling ESOP shares for ex-staff till one year after IPO - Indian IPO Blog

Indian IPO Blog

Insights into investing world in India

Friday, August 3, 2012

SEBI restricts selling ESOP shares for ex-staff till one year after IPO

The Securities and Exchange Board of India (SEBI) today said that shares owned by ex-employees, allotted through ESOPs (Employee Stock Options), cannot be sold for a period of one year pursuant to an IPO by the company.

SEBI said that if someone ceases to be an employee of a company on the date of allotment of shares pursuant to the IPO, the shares held by such a person cannot be exempted from the one year lock-in provision. SEBI said “In other words, such shares held by ex-employees have to be locked in...”

No comments:

Post a Comment

Mazgaon Dock IPO upcoming till month end

State-owned Mazagon Dock Shipbuilders is likely to raise Rs 500-600 crore through an initial public offer (IPO) by the end of this month,...