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Journalism of Courage
The Department of Company Affairs is considering whether to let the managements of unlisted companies decide the pricing norms for making preferential allotments and issuing sweat equity. Dca, which is in the process of framing comprehensive guidelines for unlisted Indian companies on preferential allotments, employee stock options and sweat equity, has constituted a 12-member committee headed by J.R. Verma for the purpose and the norms are expected to be announced soon, official sources said here. “The committee has held several meetings to discuss matters related to this and ESOPs. We are considering if the pricing of such issues can be left to the management of the unlisted companies,” sources said.
Also, the committee is yet to take a view on whether the mandatory lock-in period holds any relevance in the case of unlisted ones and whether this requirement can be waived in this case.
