Current Affairs · Regulations and Reforms
Under the SEBI market reforms approved in 2025, what is the new relaxation regarding startup founders holding Employee Stock Ownership Plans (ESOPs) after an IPO?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1ESOPs have been completely banned for all tech company founders
- 2Founders can retain ESOPs granted before IPO, provided there is a 1-year gap before the draft prospectus filing✓
- 3Founders can completely liquidate all ESOPs just before the IPO opening
- 4Founders are strictly prohibited from holding ESOPs post-IPO
Correct answer
Founders can retain ESOPs granted before IPO, provided there is a 1-year gap before the draft prospectus filing
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