The Capital Market Regulator Sebi has imposed a penalty of ₹ 1 LAKH on Bharti Infrarate, now known as the Towers Indus, because the rules violate related to the employee stock option scheme.
In its order, Sebi found that Bharti Infrarates violated the provisions of SBEB (stock -based employee allowance) by not taking the excess of 5.32,862 company shares in the specified time line on March 31, 2017.
In its release application submitted by the company in October 2019, Bharti Infrarates gave information that he had a surplus of 5.32,862 company shares in the ESOP TRUST on March 31, 2017, which could not be adjusted in terms of SBEB rules.
The name Bharti Infrarate was changed to the Indus Tower in December 2020, after the merger of the Bharti Infratil and the Indus Towers.
Because the shares obtained through the secondary market are locked for a period of six months based on regulations, the company instead issued new shares in the 2015-16 TA against the options made by employees.
This stock is the remaining balance shares in the Esop Trust obtained between February and March 2015 on the secondary market against sufficient life options.
These stocks, however, then become inappropriate because the non-ultization of the stock is to be transferred to employees because the requirements for the six-month mandatory locking period that apply to secondary acquisitions based on regulations.
The company was asked to harmonize the scheme with SBEB regulations, which failed to do.
“Employees after using the available time and after that postpone any action for 2.5 years, at this stage cannot accept the request that it is prejudiced by regulations.