The Securities and Exchange Board of India (Sebi) has amended the norms for employee stock option schemes (ESOPs) to put a stop on listed entities from framing any such scheme to acquire their own shares from the secondary market. “It has come to the notice of Sebi that some listed entities have been framing their own employees benefit schemes, wherein trusts have been set up to deal in their own securities in the secondary market, which was not envisaged within the purview of Sebi (ESOS and ESPS) Guidelines 1999,” Sebi said. The regulator has said companies that have already framed and implemented such schemes involving dealing in their own securities will have to inform the stock exchanges within a month. Further, the companies will have to realign their ESOP schemes with the new norms before June 30, 2013.
Sebi disposes inquiry against 2 companies
Sebi has disposed of enquiry proceedings against Temptation Foods and Venture Business Advisers, as both companies are in the process of being wound up. The market regulator had initiated enquiries against the two companies for their involvement for allegedly indulging in fraudulent and trading practises in the shares of Kohinoor Foods. The case relates to a matter way back in 2007. Sebi had found that the two entities had entered into synchronised and self trades thereby allegedly creating artificial volumes in Kohinoor Foods. Disposing of the case against the entities, Sebi, in two separate orders dated January 16, said the
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