Rules on insider trading will apply to employee trusts which administer employee stock option plan (ESOPS) and they will have to make disclosures when their holding changes, SEBI said in an informal guidance to an IT company on Tuesday. Pune-based KPIT Cummins Infosystems plans to offer employees the cashless exercise using the trust route, featuring the company funding the trust for the subscription amount. The company had sought an understanding from the regulator on whether the activities of the trust carried out on behalf of employees will attract provisions of SEBI's insider trading rules.
Source : Economic times
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