SEBI permits Call & Put options!

[CS Jigar Shah]

 

In  a much awaited move, SEBI has withdrawn its 1st March, 2000 notification and replaced it with a new one on 3rd October, 2013.

 

It permits ROFRs, Tag/Drag rights and Call & Put Options to be included in Shareholder Agreements and Articles of Association.

 

There are some conditions imposed on Call & Put Options and SEBI has also made it clear that these are allowed prospectively.

 

That means all such contracts entered into prior to this October notification do not stand validated. Copy of sebi circular attached herewith.

 

The copy of 1^st March, 2000 circular is not available on website but the notification was cited in full in judgement (page no. 9) attached herewith, for your reference only.

 

Souce: Money control