esop

Young Indian professionals earn more than ever, yet face rising costs, unaffordable housing, and job insecurity due to AI. This new middle class grapples with maintaining a curated online image while managing internal anxieties about financial stability and professional relevance in a rapidly evolving economy.

Uday Kotak, founder of Kotak Mahindra Bank, urged India to reduce its reliance on foreign capital and cultivate a robust domestic pool of long-term risk capital for true self-reliance. He emphasized that companies should prioritize building businesses with a three-to-five-year vision over short-term stock price fluctuations, advocating for stronger domestic private equity and venture capital ecosystems.

Digital payments platform PhonePe on Friday announced a buyback of employee stock options (esops) worth Rs 135 crore. The buyback offer follows a three-tier model, based on seniority, a statement said.

Fintech platform Razorpay is buying back esops worth Rs 578 crore from 650 existing and former employees. Lightspeed Venture Partners along with Moore Strategic Ventures, who will subsequently join the company’s cap table, are joining the funding round.

BharatPe, the merchant payment and lending network company, has launched what it claims is India’s first ‘esop Cheque Cash Karo’ scheme. All esop holders have been given option to sell back shares from their first vesting back to BharatPe.

Indian corporate law provisions allow Indian companies to issue esop to the employees of their holding or subsidiary companies outside India. Therefore, it is possible for an Indian company to issue esops to employees outside India.

iD Fresh Food on Thursday announced its seventh round of employee stock option plan (esop) tranche for 27 employees for their contribution to the company’s success and continued growth through challenging times.

IndusInd Bank MD and CEO Sumant Kathpalia is planning to sell some of his shares in the private sector lender to settle loans and vesting of upcoming esop, the bank said on Wednesday.

The start-up community had expected some more sops from the Government in the upcoming budget regarding esop taxation for start-ups.

Razorpay has extended Rs 1 lakh worth of esops to each of its 3,000+ employees for the first time, reflecting its commitment to an employee-first ethos. Previously, Razorpay’s esop buybacks have benefited numerous employees, with the latest $75 million buyback in 2022 impacting 650 employees.

Companies have long offered esops or stock options to employees as a reward for productivity or as an incentive to keep them from going over to the competition. Employees look forward to making a packet on these stocks — but are they really such a boon? Here’s the dark side of esops

India's startup ecosystem faces challenges with esop taxation, creating liquidity issues for employees. While a 2020 tax deferral aimed to help, it's limited to a small fraction of eligible startups. Expanding this benefit to all recognized startups and unlisted companies is crucial for making esops a true wealth-creation tool.

PhonePe, the digital payments platform of Walmart-owned Flipkart, is buying back employee stock options (esops) worth Rs 135 crore. The company’s founders will not be participating in the buyback while the top leadership can sell up to 10% of the vested stock.

Market regulator Sebi has notified new esop regulations, including for purchase of shares by employee welfare trusts from the secondary market with adequate safeguards.

Finance Minister Nirmala Sitharaman has introduced significant amendments to the Companies Act, aiming to decriminalize procedural defaults and boost flexibility in share buybacks. The proposed changes also introduce new executive compensation instruments and streamline merger processes. Special benches for the National Company Law Tribunal are planned, alongside relaxations for small companies regarding CSR requirements.

The 2020 tax deferment policy for esops aims to address immediate tax liabilities and financial strain on startups. Despite its potential, applicability is limited to only 3,605 IMB-certified startups. NASSCOM recommends expanding eligibility to all DPIIT-recognized startups to attract talent and reduce employee attrition.

Udaan, the B2B eCommerce platform, on Wednesday announced an esop policy covering all employees and said future allocations will vest every quarter, as it removed the standard one-year cliff'.