India (SEBI) Clarifies Employees Stock Option Rules ‏

India's capital markets regulator clarified late Friday that employees of companies can subscribe to stock options even if they have sold the firm's shares during the previous six months.Employees, however, won't be permitted to buy the company's shares within six months of selling stock options, the Securities & Exchange Board of India said in a notice.It said while exercising employee stock options, the code of conduct framed by the company and "the fundamental principles for prohibition of insider trading as specified in the regulations must be complied with."Employees will also have to wait for six months since the last transaction in the company's shares to make an opposite trade, the regulator said.However, shares subscribed to under initial public offerings will only have to be held compulsorily for 30 days, it said.These rules can be waived for personal emergencies for sale of the company's shares if the reasons are recorded in writing and there is no element of insider trading. ...
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