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Abhishek Jain

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Associate in the General Corporate Practice at the Bengaluru office of Cyril Amarchand Mangaldas. He can be reached at abhishek.jain@cyrilshroff.com

Proposal to make Companies with Outstanding Stock Appreciation Rights (SARs) eligible to undertake an IPO

Background

Historically, companies have provided employees with share-based incentives by way of employee stock options (“ESOPs”). However, with evolving corporate incentive structures, various new models have emerged, especially driven by start-ups. These incentives models include Stock Appreciation Rights (“SARs”), Restricted Stock Units (RSUs), Performance Stock Units (PSUs), Employee Share Purchase Schemes (“ESPS”), Phantom Stock Units (PSU), Save As You Earn Share Schemes (ShareSave), Non-qualified stock options (NSOs), Management Stock Options (MSOP), etc. Generally, employees look forward to an “exit event” to realise gains from these incentive structures, with an Initial Public Offering (“IPO”) being one of the most common “exit events”. Continue Reading Proposal to make Companies with Outstanding Stock Appreciation Rights (SARs) eligible to undertake an IPO

Regulatory framework governing employee benefits by equity listed companies

This post analyses the scope of the regulatory framework governing employee benefits by equity listed companies in India and the applicability of the SEBI (Share-Based Employee Benefits and Sweat Equity) Regulations, 2021, to employee welfare trusts set up by promoters and share-linked but purely cash-based employee benefits.Continue Reading Regulatory framework governing employee benefits by equity listed companies

GCC Series: Setting-up Global In-house Centres (GICs) in India: Key regulatory considerations

In part VI of our series on key legal considerations for establishing global capability centres (“GCCs”) in India,[1] we discuss global in-house centres or GICs that precede and are a variant of current GCCs.Continue Reading GCC Series: Setting-up Global In-house Centres (GICs) in India: Key regulatory considerations

Ultimate parent’s professional CEO a Significant Beneficial Owner: Do companies have to re-evaluate their corporate approval process and reporting line structures?

Background

The genesis of the concept of ‘significant beneficial ownership’ under Indian law can be traced to the Financial Action Task Force (“FATF”) recommendations on issues pertaining to ‘transparency and beneficial ownership of legal persons and arrangements’. Set up in 1989, the FATF is a global inter-governmental body, now serving as a watchdog for global money laundering and terrorist financing. Continue Reading Ultimate parent’s professional CEO a Significant Beneficial Owner: Do companies have to re-evaluate their corporate approval process and reporting line structures?

Optimal locations for Global Capability Centres (GCCs) in India: Where to set it up?

In part V of our series on key legal considerations for establishing global capability centres (“GCCs”) in India,[1] we discuss the key factors to keep in mind when determining the location where the GCC is to be set up here.Continue Reading Optimal locations for Global Capability Centres (GCCs) in India: Where to set it up?

Strategically building a workforce for Global Capability Centres (GCCs) in India

In part III of our series on key legal considerations for establishing global capability centres (“GCCs”) in India,[1] we discuss the various factors that need to be considered to engage workforce for the GCCs.Continue Reading Strategically building a workforce for Global Capability Centres (GCCs) in India

This post analyses the permissibility of and key legal considerations for share-based benefits/ incentives, like ESOPs, RSUs, SARs, etc., that foreign companies offer to the employees of their Indian group companies.Continue Reading Employee Share-based Incentives by foreign companies for employees of group companies in India: Should it be an ESOP, RSU, ESPS, SAR or Phantom Stock?

Global Capacity Centres (GCCs) take centre stage in fuelling global growth

Emergence and Transformative Evolution of GCCs in India

Global Capability Centres (“GCCs”) started as offshore global in-house centres (“GICs”) in the Indian  banking industry to help cut costs and provide operational support to the service offerings of a foreign entity (“Foreign Entity”). India has gained credence as a favourable destination because of its skilled human resources (wide talent pool) and competent operational costs. As of FY 2022–23, India’s approximately 1,580 GCCs have 1.66 million employees,[1] and this number is rapidly increasing.Continue Reading Global Capability Centres (GCCs) take centre stage in fuelling global growth