Latest news with #Esops
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Business Standard
7 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.
Mint
29-05-2025
- Business
- Mint
Mint Explainer: Why Lokpal cleared former Sebi chief Buch of corruption charges?
Anti-corruption ombudsman Lokpal on Wednesday dismissed three complaints against former chairperson of the Securities and Exchange Board of India (Sebi) Madhabi Puri Buch that were largely based on a 2024 report by Hindenburg Research. The Lokpal said it found no merit in the allegations of corruption and termed the complaints 'vexatious" and based on "presumptions". The ombudsman's order said there was no credible evidence of wrongdoing or conflict of interest by Buch or her husband. Mint explains the allegations, what the independent statutory body found, and what it means for future cases. What were the allegations against former Sebi chief Buch? The complaints were filed between August and October 2024 by different individuals, including Trinamool Congress parliamentarian Mahua Moitra. All three cited a 10 August 2024 Hindenburg Reasearch report that questioned Sebi's actions under Buch's tenure. Complainants alleged Buch failed to disclose a ₹5 crore investment in a fund linked to the Adani Group, received consultancy and rental income from entities under Sebi scrutiny, and profited from ICICI Bank employee stock ownership (Esops) while the bank faced regulatory action. Also Read | Madhabi Puri Buch's Sebi tenure: A legacy of reform, controversy, and resistance What did the Lokpal find and what did it note in its order? The Lokpal dismissed all allegations, finding no prima facie evidence of an 'offence of corruption" under the Prevention of Corruption Act. It noted that Buch and her husband had invested in Global Dynamic Opportunities Fund (GDOF) in 2015, two years before she joined Sebi. Their investment was unrelated to Adani-linked sub-funds and was fully redeemed in 2018, before Sebi's Adani investigation began in 2020. The Supreme Court had already found Sebi's Adani probe to be fair and comprehensive. The Lokpal also rejected allegations of document redaction, calling the claim an indirect challenge to the apex court's findings. On the charge of conflict of interest regarding Mahindra Group, the Lokpal noted that Buch had recused herself from matters relating to the group in 2019. Her husband, Dhaval Buch, received ₹4.78 crore in consultancy fees from Mahindra between 2019 and 2021, but the Lokpal found no link between this and regulatory decisions, which were handled by others at Sebi. Similar charges were raised around Blackstone Inc. and its Reit licences. However, the Lokpal observed that Blackstone's registrations predated Buch's tenure as chairperson, and she had no involvement in subsequent approvals. The Lokpal ruled that the ₹16.8 crore Buch earned from ICICI Bank Esops after joining Sebi was part of her past service package. There was no evidence linking these to any favourable treatment by Sebi, which had acted through independent committees in all ICICI-related matters. The Lokpal found the complaints to be speculative, and lacking verifiable facts. 'The complaints were essentially founded on the Hindenburg report of 2024, by a known short seller trader whose focus was to expose or corner Adani Group of companies. That report, by itself, cannot be made the sole basis to escalate action against Buch," the order said. 'The allegations in the complaints are more on presumptions and assumptions and not supported by any verifiable material and do not attract the ingredients of the offences to direct an investigation." What does this mean for Sebi? The order effectively clears Buch of corruption allegations linked to the second Hindenburg report. Legal experts say the complaints nevertheless pushed Sebi's internal governance under greater scrutiny. 'Public confidence is more a matter of perception than a regulatory issue. Clean chit or no clean chit, the confidence of public has been taken care of with the complaint and necessary actions have already been invoked by the current regime," said Aditya Bhansali, founding partner at Mindspright Legal. Following Buch's departure, Sebi set up a high-level committee under new chairman Tuhin Kanta Pandey to overhaul its conflict-of-interest framework. The committee, which first met on 16 May, is evaluating public disclosure norms for board members' commercial interests, trading restrictions, recusal procedures, and even an ombudsman mechanism. Bhansali noted that Sebi's earlier code of conduct was inadequate for the Buch-era controversies. 'It is not the order," he said, 'but the complaint filed by the complainants that sparked the necessity of implementation of the rules or code in order to avoid the conflict of interest." Also Read: After Madhabi Puri Buch, will Sebi have a bureaucrat at its helm? Can the Lokpal's order be challenged? While the Lokpal Act provides no direct appeal mechanism, parties may approach the Supreme Court or a high court under writ jurisdiction. 'Courts are generally cautious in interfering with findings of quasi-judicial bodies like the Lokpal," said Hardeep Sachdeva, senior partner at AZB & Partners. 'A challenge would typically have to demonstrate that the order was perverse or manifestly arbitrary; it violates principles of natural justice, or it contains certain significant procedural irregularities." Has Lokpal acted against senior officials before? Yes. In 2021, the Lokpal ordered a probe into corruption charges against the then director general of the National Research Laboratory for Conservation of Cultural Property, leading to a CBI case. It also passed an order against a high court judge over alleged undue influence. However, the Supreme Court stayed that order, raising concerns over the Lokpal's interpretation of its jurisdiction in such cases. ===================== Anti-corruption ombudsman Lokpal on Wednesday dismissed three complaints against former chairperson of the Securities and Exchange Board of India (Sebi) Madhabi Puri Buch, finding no merit in allegations of corruption. The complaints were largely based on a 2024 report by Hindenburg Research. The Lokpal called the complaints 'vexatious" and 'based on presumptions", finding no credible evidence of wrongdoing or conflict of interest by Buch or her husband, in the order of May 28. Mint breaks down the allegations, why the Lokpal found them baseless and whether this order can be challenged and how the Lokpal, an independent statutory body, has looked at past high-profile complaints. What were the complaints about? The complaints were filed between August and October 2024 by different individuals, including MP Mahua Moitra. All three cited a 10 August 2024 Hindenburg report that questioned Sebi's actions under Buch's tenure. Complainants alleged Buch failed to disclose a ₹5 crore investment in a fund linked to Adani Group, received consultancy and rental income from entities under Sebi scrutiny, and profited from ICICI Bank ESOPs while the bank faced regulatory action. What did the Lokpal find? The Lokpal dismissed all allegations, finding no prima facie evidence of an 'offence of corruption" under the Prevention of Corruption Act. It noted that Buch and her husband had invested in Global Dynamic Opportunities Fund (GDOF) in 2015, two years before she joined Sebi. Their investment was unrelated to Adani-linked sub-funds and was fully redeemed in 2018—before Sebi's Adani investigation began in 2020. The Supreme Court had already found Sebi's Adani probe to be fair and comprehensive. The Lokpal also rejected allegations of document redaction, calling the claim an indirect challenge to the apex court's findings. On the charge of conflict of interest regarding Mahindra Group, the Lokpal noted that Buch had recused herself from matters relating to the group in 2019. Her husband, Dhaval Buch, received ₹4.78 crore in consultancy fees from Mahindra between 2019–2021, but the Lokpal found no link between this and regulatory decisions, which were handled by others at Sebi. Similar charges were raised around Blackstone Inc. and its REIT licences. However, the Lokpal observed that Blackstone's registrations predated Buch's tenure as chairperson and she had no involvement in subsequent approvals. As for the ₹16.8 crore Buch earned from ICICI Bank ESOPs after joining Sebi, the Lokpal ruled these were part of her past service package. There was no evidence linking these to any favourable treatment by Sebi, which had acted through independent committees in all ICICI-related matters. What is the Lokpal's final word? The Lokpal found the complaints to be speculative, lacking verifiable facts. 'The complaints were essentially founded on the Hindenburg report of 2024, by a known short seller trader whose focus was to expose or corner Adani Group of companies. That report, by itself, cannot be made the sole basis to escalate action against Buch," the order said. It added, 'The allegations in the complaints are more on presumptions and assumptions and not supported by any verifiable material and do not attract the ingredients of the offences to direct an investigation." What does this mean? The order effectively clears Buch of corruption allegations linked to the second Hindenburg report. Legal experts say the complaints nevertheless pushed Sebi's internal governance under greater scrutiny. 'Public confidence is more a matter of perception than a regulatory issue. Clean chit or no clean chit, the confidence of public has been taken care of with the complaint and necessary actions have already been invoked by the current regime," said Aditya Bhansali, founding partner at Mindspright Legal. Following Buch's departure, Sebi set up a high-level committee under new chairman Tuhin Kanta Pandey to overhaul its conflict-of-interest framework. The committee, which first met on 16 May, is evaluating public disclosure norms for board members' commercial interests, trading restrictions, recusal procedures, and even an ombudsman mechanism. Bhansali noted that Sebi's earlier code of conduct was inadequate for the Buch-era controversies. 'It is not the order," he said, 'but the complaint filed by the complainants that sparked the necessity of implementation of the rules or code in order to avoid the conflict of interest." Can the Lokpal's order be challenged? While the Lokpal Act provides no direct appeal mechanism, parties may approach the Supreme Court or a High Court under writ jurisdiction. 'Courts are generally cautious in interfering with findings of quasi-judicial bodies like the Lokpal," said Hardeep Sachdeva, senior partner at AZB & Partners. 'A challenge would typically have to demonstrate that the order was perverse or manifestly arbitrary; it violates principles of natural justice, or it contains certain significant procedural irregularities." Has Lokpal acted against senior officials before? Yes. In 2021, the Lokpal ordered a probe into corruption charges against the then DG of the National Research Laboratory for Conservation of Cultural Property, leading to a CBI case. It also passed an order against a High Court judge over alleged undue influence. However, the Supreme Court stayed that order, raising concerns over the Lokpal's interpretation of its jurisdiction in such cases.
Mint
20-05-2025
- Business
- Mint
This CEO has no fixed-income investments, and has never done an SIP
Ashish Shanker, managing director and CEO of Motilal Oswal Private Wealth, has followed a simple asset allocation strategy for 25 years. He swears by equities and has no fixed-income investments. The CEO, who oversees ₹1.3 trillion in advisory assets, also said he has never done an SIP in his life. He simply maintains 6-8 months of household expenses in his savings account and puts everything beyond that into equities through lump sum investments. Shanker spoke to Mint as part of Guru Portfolio, a series in which leaders in the financial services industry share how they manage their money. Here are some edited excerpts from the interview. How has your portfolio changed over the past year? Nothing much has changed. I have 100% of my portfolio in equities, and it's been like this for nearly 25 years. A bulk of it (roughly 75%) is in Motilal Oswal shares that I got through employee stock ownership plans (Esops). The rest is split between individual stocks, mutual funds and an alternative investment fund (AIF). I still have a few stocks that I bought back in the late '90s, including ICICI Bank, Bharti Airtel and Asian Paints. I've also invested in various mutual fund schemes in the flexicap and mid-cap space. Apart from schemes run by Motilal Oswal AMC, I also have schemes by other fund houses such as Old Bridge, Helios and White Oak. Also read: India's young traders are betting on IPOs—and borrowing their way into a crisis Last year I added a Category 3 AIF, MO Wealth Delphi Equity Fund, to my portfolio. It was launched by our company (MOPW), and I put in the first cheque. It is a feeder fund that invests in boutique funds, which we think are underrated and undiscovered. It comprises roughly 4% of my portfolio. How do you manage volatility? Swearing by equities for the past 25 years has worked out well for me. That said, this is not a template that fits all. Everyone is different in their outlook, temperament, and ability to stomach volatility. I've seen my portfolio fall 30-50% at least four times. Once you get used to that, you become immune to volatility. I am a strong believer that if you have good companies or funds in your portfolio, over a long period of time, the predictability of equities is high. Of course, in the short term, one has to be prepared for the vagaries of the market. What have your portfolio returns been like? My portfolio has generated an XIRR of 46% in the past five years, 56% in the past three years, and about 41% over the past year. MOFSL has performed well since 2024, and that's why it has done well. The Motilal Oswal shares I got through Esops are fully vested. Do you have any international allocation? At the moment, 100% of my equity holdings are in India. I feel India continues to offer a lot of growth opportunities. I do understand global economics and what's happening in other markets. However, being in India gives me the ability to understand what's happening around me far better. To be sure, I am not averse to having international exposure. We recommend it to many of our clients, and a lot of them do so. Did you make any mistakes in the past year? I don't look at my portfolio from a one-year or six-month perspective. I've been an equity investor for the past 25 years and it has delivered handsome returns. I've also more or less achieved a corpus that's large enough if I want to retire. Although I don't plan to retire anytime soon, my needs are taken care of and I can be more aggressive in my investments. Within my equity portfolio, most regrets are of omission, not commission. There are certain things I had thought of investing in but did not end up pressing the buy button, which ended up performing well. Every investor goes through that. But there are no regret about the things I've invested in. For now, I'm very happy with my investments. What about financial planning for your children? I have a 17-year-old son, and his financial plan is directly linked to my portfolio. If my corpus is growing, things like a foreign college education should automatically get sorted. Normally, people forecast the amount they will need at a future date and then do an SIP to reach that goal. In this case, college is an expense that is not so near-term, and my equity-heavy portfolio suits this as it's a long-term goal. I don't have a separate account for this goal, but I've invested in two funds and mentally marked them as his college funds. My point is that if there is a mother corpus that can pay for all goals in life, there's not much to worry about. Do you do SIPs? I've never done an SIP in my life. SIPs bring discipline to investing, but I don't have a problem with being disciplined. I always maintain 6-8 months of expenses in my savings account. Anything beyond that goes straight to equities through a lump sum. The only exception is when I have loans. I don't like them at all. In fact, I had mentioned last time that I live in a rented apartment and haven't bought a flat. Whenever I get any bonus or salary, I try to get rid of the loans first. Currently, since I have no loans pending, I am investing the surplus into equities – mostly through mutual funds. Last time, you mentioned that your parents also invest 100% in equities. The market is up now, but how do they react when it falls? That's true. My parents and I had an interesting conversation 8-9 years ago regarding their investments. They had a decent corpus, and I recommended going all in on equities. They broke all their fixed deposits and decided to put everything in stocks. It's worked out well for now. I've told them that if there's a shortfall, I will cover for them. Also read: How new BookMyForex card with no ATM, cross-currency fees stacks up The dividends from stocks are big enough now to fund their monthly expenses. When markets fall, they sometimes ask me about it. But there's no big reason to worry. I tell them that their stock portfolios have beaten fixed deposits hands down over the past eight years. What about insurance? I have both health and life cover. My family as a whole has ₹20 lakh of health cover. I also have ₹5-crore life cover. Over the years, life insurance has gone down a bit as my portfolio has grown in size. What about retirement? I feel people should have at least 25 times their annual expenses when they retire. I've achieved that number, but don't plan to retire anytime soon. Retirement is an old concept. Earlier, most people would go to factories and feel physically tired after a certain age. But in today's day and age, most of us are work with our brains. If we remain physically and mentally fit, we can continue to work for much longer. To give you an example, Warren Buffett recently announced he would step down as CEO of Berkshire Hathaway later this year. He's 94 years old. He took over Berkshire when he was just 34. Even after he steps down as CEO, he'll continue going to the office regularly. In a previous edition of Guru Portfolio, you mentioned buying a Mercedes E-Class. Did you treat yourself to anything exciting this year? My friend and I now co-own Mumbai Mozartt, a team in the Table Tennis Super League. This state-level league was started by the same guys who run the Ultimate Table Tennis League. I'm a big table tennis fan and was a state-level player myself. I decided to buy the Mumbai team to support the sport. This is not really an investment, and I don't expect much in return. I paid a few lakhs for it. Also read: Four issues you may face if you switched jobs but did not transfer your PF
Time of India
19-05-2025
- Business
- Time of India
IndusInd Bank signs pact to support early-stage startups
IndusInd Bank on Monday said it has signed a pact with AIC STPINEXT to provide early-stage startups and MSMEs essential financial solutions and structural support. AIC STPINEXT is a special purpose vehicle of Software Technology Parks of India (STPI) under the Ministry of Electronics and Information Technology (MeitY). "Under this collaboration, IndusInd Bank will deliver a range of tailored banking solutions to support early-stage startups associated with STPI/STPINEXT. "The Bank will offer a specialized Current Account product with no quarterly average balance requirement, making it easier for startups to manage their finances," IndusInd Bank said in a regulatory filing. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Additionally, the Bank will offer support such as expert guidance, and conduct workshops around financial management including banking basics, equity infusion, Employee Stock Ownership Plan (Esops), segment-based funding etc. To further support operational efficiency, the bank will offer payroll and attendance management services to early-stage startups at no cost. Live Events Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Shares of IndusInd Bank were trading at Rs 782.70, up 0.05 per cent over previous close on BSE.
Mint
08-05-2025
- Business
- Mint
Paytm's Sharma settles Sebi case, barred from new Esops for 3 years
Vijay Shekhar Sharma, the founder and managing director of One97 Communications Ltd, has settled a regulatory probe initiated by the Securities and Exchange Board of India (Sebi) over alleged irregularities in the grant of employee stock options (Esops) ahead of the fintech's 2021 initial public offering. Sebi accepted revised terms proposed by Sharma, his brother Ajay Shekhar Sharma and One97 Communications Ltd (OCL), closing enforcement proceedings without admission or denial of guilt, according to the settlement order dated 8 May. Under the agreement, Vijay Shekhar Sharma has been barred from accepting Esops from any listed company for three years. The regulator's probe centered around 2.1 crore Esops granted to Sharma in October 2021 and over 2.2 lakh options given to his brother in May 2022 after Sharma allegedly declassified himself as a promoter just days before Paytm filed its initial public offering (IPO) documents. Also read: Sebi alleges Synoptics used IPO funds to inflate own stock on market debut Sebi noted that Sharma, who had earlier been disclosed as a promoter of the company in filings with the Registrar of Companies, reclassified himself as a non-promoter on 12 July 2021—just three days before the IPO filing. The regulator alleged that this move, coupled with the transfer of a portion of Sharma's equity to a family trust controlled by him, allowed him to retain effective control while becoming eligible for a large Esop allotment—something restricted under Sebi's share based employee benefits regulations for promoters holding more than 10% stake. The settlement terms include the cancellation of all such unexercised Esops granted to the Sharma brothers. Additionally, Sharma will pay a monetary settlement of ₹1.11 crore and One97 Communications will pay a similar amount. Ajay Sharma will pay ₹57.11 lakh and disgorge gains of ₹35.86 lakh from the sale of shares obtained through the exercised Esops. Also read: Sebi defers rollout of common contract note for FPIs to July Sebi's order emphasized the importance of transparency and fairness in the administration of employee benefit schemes, particularly in the run-up to public issues. 'OCL and Mr. Vijay Shekhar Sharma made incorrect disclosures in the offer documents by disclosing Mr. Vijay Shekhar Sharma as a non-promoter public shareholder," Sebi observed. In its settlement process, the regulator's high-powered advisory committee and anel of whole-time members cleared the revised terms submitted in January and March 2025, respectively. The applicants remitted their settlement and disgorgement amounts in April, following which Sebi issued the closure order. While the settlement closes this chapter of regulatory action, Sebi has reserved the right to reopen proceedings, if any representation made during the process is found to be untrue or if the applicants breach any conditions of the settlement. Also read: Sebi plans raising MF exposure limit in REITs, InvITs; experts flag tax concerns Paytm, which debuted on the Indian stock exchanges in November 2021 with a ₹18,300 crore public issue, has faced scrutiny over its business model, profitability and governance since listing.
