Corporate Updates – 31-10-2014


SEBI has notified new ESOP regulations, including for purchase of shares by employee welfare trusts from the secondary market with adequate safeguards. SEBI has allowed companies to have employee stock option programmes where they can buy their own company shares subject to certain conditions and safeguards to improve the governance and transparency of the schemes like requirement of shareholders’ approval through special resolution for undertaking secondary market acquisitions; restrictions on sale of shares by trusts; at least six month holding period for shares acquired from secondary market etc. New Regulations also address concerns regarding potential market abuse relating to ESOP.


RBI has now allowed Urban Co-operative Banks (UCBs) to use abbreviations / abridged names /logo etc., as part of their brand building effort so long as the full name as appearing in the banking licence is also shown along with such abbreviated/abridged names in all publicity material / stationery. RBI with a view to ensuring that the efforts towards brand building do not compromise with the larger issue of proper disclosure to the public. The full name of the bank as appearing in the Certificate of Registration and the licence granted by RBI should also be displayed prominently.

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