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Assocham pats SEBI for easing corporate norms

The Associated Chambers of Commmerce Industry of India or Assocham has hailed the Securities and Exchange Board of India'ss announcement on Employees Stock Options Plan or ESOPs.

The chamber hoped it will provide further impetus to the revival of the capital market by giving employees a sense of ownership and motivation.

Chamber president K P Singh said since all share issues are the prerogative of the shareholders, they should have the right to decide the nature of the options they wish to offer in their company.

The general requirements to be met by these schemes should be in line with international practices, said Singh.

Since stock options are share issues to a speciflc kind, the management of all aspects of the scheme for any particular company should be left to that company. The SEBI may ask for a specifial annual return to be filed providing details in line with the return on fixed deposits.

Singh said the SEBI should only lay down broad parameters rather than creating water-tight compartments. There can be any number of parameters but ultimately the owners of the company should have full freedom for modus operandi of the scheme to offer flexlible and cheap pricing.

UNI

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