BUSINESS

SEBI issues detailed ESOP disclosure norms

The Securities and Exchange Board of India (SEBI) on Tuesday come out with detailed disclosure norms for listed firms while exercising employee stock options programmes (ESOP) to address concerns regarding potential market abuse.

As per the norms, the compensation committee constituted by companies for ESOP schemes will be required to formulate detailed terms and conditions.

In addition, they have to disclose information about the trust, powers and duties of trustee. These disclosures are part of SEBI’s efforts to improve governance and transparency of such schemes.

The circular details wide ranging disclosures that listed firms are required to make with regard to ESOS, SAR (stock appreciation right) and description of the schemes, among others. — PTI