Mumbai, July 17: The Securities and Exchange Board of India (Sebi) is likely to review its employee stock option plan (ESOP) guidelines to fine tune provisions regarding time of implementation and role of merchant bankers in issuance of ESOPs, Sebi chairman G N Bajpai said. ESOP guidelines are prospective in nature and in case there are concerns about time period, the regulator could review norms, Bajpai said, addressing a function on corporate governance organised by Confederation of Indian Industry here on Thursday.

The issuance of shares under ESOP had a wide impact, going beyond to the purpose it was issued, and merchant bankers are supposed to act as independent parties to look into impact of ESOP issuance on sharing of wealth, Bajpai said.
However, if this arrangement becomes more of a stream of income to merchant bankers, the regulator would have relook at guidelines, he added. Bureau Report