India markets regulator looks to plug gaps allowing founders to own stock options

India markets regulator looks to plug gaps allowing founders to own stock options In new-age tech companies, founders have reduced their shareholding to below 10 per cent and have stayed away from promoter tag Representational image.The Securities and Exchange Board of India (Sebi) does not want founders to own stock options if they have rights akin to those enjoyed by promoters, the sources with direct knowledge of the matter said.According to the current regulations, “a director who either himself, through his relative or any corporate body, directly or indirectly, holds more than 10 per cent of the outstanding equity shares of the company” is not eligible to receive stock options.This is a gap which needs to be plugged, it will be done via an amendment to Sebi’s stock options rules,” the source added.

“In new-age tech companies, founders have reduced their shareholding to below 10 per cent and have stayed away from the promoter tag,” the first source said.Sharma reduced his shareholding to 9.