Explained: Sebi’s new Esop norms for IPO-bound startup founders

Capital markets regulator Securities and Exchange Board of India (Sebi), in a board meeting on June 18, greenlit multiple measures to enable “ease of doing business”. One of them was relaxing norms around employee stock options (Esops) for startups heading to Dalal Street.

Here is a look at the rules and the updates:

As per the new rules, Sebi is allowing startup founders to continue holding Esops even after their company lists on the stock exchange.

What was the old rule?

Previously, it was mandated that founders be classified as “promoters” when filing…