Current Affairs · Economy and Market Reforms
Under the regulatory reforms notified by SEBI, what is the rule regarding startup founders turned promoters retaining Employee Stock Option Plans (ESOPs) after an IPO?
- 1Founders are completely barred from holding ESOPs post-IPO
- 2Founders must liquidate all ESOPs before filing the DRHP
- 3Founders can retain ESOPs if they were granted at least 1 year prior to the IPO filing✓
- 4ESOPs can be freshly granted to promoters anytime after listing without restrictions
Correct answer
Founders can retain ESOPs if they were granted at least 1 year prior to the IPO filing
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