Latest news with #Esop
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Business Standard
5 days ago
- Business
- Business Standard
Sebi bars Paytm's Vijay Shekhar Sharma from accepting Esops MODIFIED
Paytm founder and CEO Vijay Shekhar Sharma has been barred from accepting any fresh employee stock options (Esops) from any listed company for the next three years, according to a settlement order by the Securities and Exchange Board of India (Sebi). Paytm parent One97 Communications, Vijay Shekhar Sharma, and the company's chief business officer (CBO) Ajay Shekhar Sharma have settled a matter with Sebi related to alleged lapses in Esop issuances. One97 had given 21 million Esops to Vijay in October 2021 and 262,000 Esops to Ajay in May 2022, which Sebi found to be in violation of regulations. Under the terms of settlement, One97 cancelled the Esops issued to the Sharma brothers and paid a settlement amount of ₹1.11 crore to Sebi. Further, the settlement order details payment of ₹1.11 crore by Vijay and ₹57,11,000 by Ajay. Additionally, Sebi directed disgorgement of ₹35,86,000 from Ajay for the sale of around 3,720 shares of One97 obtained upon the exercise of the Esops. The market regulator had alleged that as the founder and managing director of One97, Vijay was in a position to influence the decision of the Nomination and Remuneration Committee (NRC) while approving grant of Esops to himself and his brother. Sebi's allegations also say that the company made incorrect disclosures in the offer documents by disclosing Vijay as a non-promoter public shareholder. The regulator added that Vijay created a scheme through arrangement of transfer of a portion of his equity in the company to a family trust controlled by him to continue to exercise control over more than 10 per cent equity and circumvent the Sebi regulations. The family trust was created only a few days prior to the filing of the offer documents for the company's IPO. The market regulator had sent show-cause notices to the company and Sharma brothers in February 2024 to which they filed separate settlement applications. Earlier in April, the company had disclosed that Vijay had voluntarily foregone 21 million Esops. Modified content to test issue.
Economic Times
12-05-2025
- Business
- Economic Times
India's slowing IPO market a healthy reset, not a setback
Live Events India's IPO market, which became the world's second largest in 2024, is now entering a phase of healthy recalibration. A combination of global economic concerns, shifting investor risk appetite and geopolitical uncertainty has led companies to reassess listing timelines and approach public markets more thoughtfully. According to PRIME Database, mainboard IPOs dropped from 26 in Q2 FY25 and 29 in Q3 to 9 in Q4. Year-to-date, IPO activity is down 58%, and total fundraising across listing platforms has declined by 18%.This isn't a setback; it's a natural part of the market cycle. Periods of pause create space to reset, refocus and quietly back the next wave of public winners. In buoyant markets, IPOs become a symbol of exuberance. Late-stage deals attract aggressive capital, with PE and VC firms chasing future listings at premium valuations. It becomes a seller's market, where founders and early backers expect exits at rich when that window tightens, as it has now, the landscape shifts. Capital turns selective, public valuations correct and liquidity tightens. For late-stage companies built around rapid listings and lofty growth assumptions, this is a moment of reckoning - one that restores discipline and reprices shift, however, is also a turning point - not just for public markets but for how private capital shapes India's growth. As IPO exits stall, attention is turning early investors, angels, VCs and even Esop holders, the need for liquidity remains. And, increasingly, it's the private market - especially secondaries - that's providing the release valve. In 2024, private equity and VC firms invested $56 bn in India, signalling a shift toward private deployment. What's different now is the growing use of secondaries and continuation vehicles - tools that help unlock liquidity and reprice fewer companies going public, buyers now have access to strong businesses at more attractive valuations. In response, new structures are gaining traction: secondary transactions offering clean exits, continuation funds supporting maturing assets, and opportunity vehicles designed to re-enter quality businesses at reset prices. These aren't stopgaps, they're part of a more sophisticated private capital seizing this moment requires discipline. Over-allocating to illiquid assets can limit flexibility, making it harder to capture emerging opportunities in both public and private markets. What's needed is a thoughtful, balanced approach that protects near-term liquidity while building long-term investors leaning into private markets, quality should be the north star: resilient business models, strong cash flows and credible paths to profitability. Diversification across sectors, geographies and stages is key to managing risk. And perhaps, most importantly, partnering with experienced private market managers can be critical in navigating dislocation and surfacing swings aren't a cue to retreat but a call to rethink and reallocate. Investors who act with intention, stay patient and remain anchored in fundamentals will be the ones best positioned when momentum the real edge isn't in choosing between public or private - it's in knowing how to blend strategically, flexibly and for the long haul.
Time of India
12-05-2025
- Business
- Time of India
India's slowing IPO market a healthy reset, not a setback
India's IPO market, which became the world's second largest in 2024, is now entering a phase of healthy recalibration. A combination of global economic concerns, shifting investor risk appetite and geopolitical uncertainty has led companies to reassess listing timelines and approach public markets more thoughtfully. According to PRIME Database, mainboard IPOs dropped from 26 in Q2 FY25 and 29 in Q3 to 9 in Q4. Year-to-date, IPO activity is down 58%, and total fundraising across listing platforms has declined by 18%. #Operation Sindoor The damage done at Pak bases as India strikes to avenge Pahalgam Why Pakistan pleaded to end hostilities Kashmir's Pahalgam sparks Karachi's nightmare This isn't a setback; it's a natural part of the market cycle. Periods of pause create space to reset, refocus and quietly back the next wave of public winners. In buoyant markets, IPOs become a symbol of exuberance. Late-stage deals attract aggressive capital, with PE and VC firms chasing future listings at premium valuations. It becomes a seller's market, where founders and early backers expect exits at rich multiples. But when that window tightens, as it has now, the landscape shifts. Capital turns selective, public valuations correct and liquidity tightens. For late-stage companies built around rapid listings and lofty growth assumptions, this is a moment of reckoning - one that restores discipline and reprices risk. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Treatment That Might Help You Against Knee Pain Knee pain | search ads Find Now Undo This shift, however, is also a turning point - not just for public markets but for how private capital shapes India's growth. As IPO exits stall, attention is turning inward. For early investors, angels, VCs and even Esop holders, the need for liquidity remains. And, increasingly, it's the private market - especially secondaries - that's providing the release valve. In 2024, private equity and VC firms invested $56 bn in India, signalling a shift toward private deployment. What's different now is the growing use of secondaries and continuation vehicles - tools that help unlock liquidity and reprice opportunity. Live Events With fewer companies going public, buyers now have access to strong businesses at more attractive valuations. In response, new structures are gaining traction: secondary transactions offering clean exits, continuation funds supporting maturing assets, and opportunity vehicles designed to re-enter quality businesses at reset prices. These aren't stopgaps, they're part of a more sophisticated private capital playbook. But seizing this moment requires discipline. Over-allocating to illiquid assets can limit flexibility, making it harder to capture emerging opportunities in both public and private markets. What's needed is a thoughtful, balanced approach that protects near-term liquidity while building long-term value. For investors leaning into private markets, quality should be the north star: resilient business models, strong cash flows and credible paths to profitability. Diversification across sectors, geographies and stages is key to managing risk. And perhaps, most importantly, partnering with experienced private market managers can be critical in navigating dislocation and surfacing value. Market swings aren't a cue to retreat but a call to rethink and reallocate. Investors who act with intention, stay patient and remain anchored in fundamentals will be the ones best positioned when momentum returns. Because the real edge isn't in choosing between public or private - it's in knowing how to blend strategically, flexibly and for the long haul.
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Business Standard
08-05-2025
- Business
- Business Standard
Sebi bars Paytm's Vijay Shekhar Sharma from accepting Esops for 3 years
Paytm founder and CEO Vijay Shekhar Sharma has been barred from accepting any fresh employee stock options (Esops) from any listed company for the next three years, according to a settlement order by the Securities and Exchange Board of India (Sebi). Paytm parent One97 Communications, Vijay Shekhar Sharma, and the company's chief business officer (CBO) Ajay Shekhar Sharma have settled a matter with Sebi related to alleged lapses in Esop issuances. One97 had given 21 million Esops to Vijay in October 2021 and 262,000 Esops to Ajay in May 2022, which Sebi found to be in violation of regulations. Under the terms of settlement, One97 cancelled the Esops issued to the Sharma brothers and paid a settlement amount of ₹1.11 crore to Sebi. Further, the settlement order details payment of ₹1.11 crore by Vijay and ₹57,11,000 by Ajay. Additionally, Sebi directed disgorgement of ₹35,86,000 from Ajay for the sale of around 3,720 shares of One97 obtained upon the exercise of the Esops. The market regulator had alleged that as the founder and managing director of One97, Vijay was in a position to influence the decision of the Nomination and Remuneration Committee (NRC) while approving grant of Esops to himself and his brother. Sebi's allegations also say that the company made incorrect disclosures in the offer documents by disclosing Vijay as a non-promoter public shareholder. The regulator added that Vijay created a scheme through arrangement of transfer of a portion of his equity in the company to a family trust controlled by him to continue to exercise control over more than 10 per cent equity and circumvent the Sebi regulations. The family trust was created only a few days prior to the filing of the offer documents for the company's IPO. The market regulator had sent show-cause notices to the company and Sharma brothers in February 2024 to which they filed separate settlement applications.
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Business Standard
08-05-2025
- Business
- Business Standard
Pre-IPO startups urge Sebi to allow Esops for founders post-listing
Pre-IPO startups, where founder holdings have been significantly diluted, are urging the Securities and Exchange Board of India (Sebi) to allow greater flexibility in issuing Employee Stock Options (Esops) to founders—including those granted post-listing. Currently, Sebi regulations prohibit Esop issuance to promoters. However, in a recent proposal, the regulator suggested allowing founders (classified as promoters or part of the promoter group) to retain or exercise Esop benefits granted up to one year before filing draft IPO papers. Legal experts highlight that multiple funding rounds often dilute founder stakes to minimal levels, making Esops a critical tool to retain their alignment with the company's growth. Kaushik Mukherjee, partner at IndusLaw, said, 'While permitting pre-IPO Esops for founders is a positive step, post-listing incentives should also be considered. Founders drive the business, and their continued motivation benefits shareholders and the company alike.' A stock market fintech startup planning an IPO recently petitioned Sebi for relaxation on post-listing Esop issuance to founders, sources said. The appeal gains even more relevance for startups that have 'reverse flipped' to India from jurisdictions such as the US, where Esop norms are more lenient. However, experts doubt Sebi will ease restrictions further. Archana Tewary, partner at JSA Advocates & Solicitors, explained, 'Post-listing, share value is market-driven, and founder incentives must align with broader corporate governance standards. Differentiating startup founders from other listed company promoters raises parity concerns.' Akshat Khetan, founder of AU Corporate Advisory and Legal Services, added that Sebi prioritises uniformity and investor protection. 'Promoter status entails responsibilities beyond stakeholding—it's tied to the company's long-term growth, not just current ownership,' he said. The debate follows a recent case where a fintech founder had to forfeit Esops worth over Rs 1,800 crore due to regulatory constraints. While startups argue for founder-friendly Esop policies, Sebi's stance remains anchored in safeguarding investor interests, say legal experts.
