The amendment recognizes the contributions of founders and aims to make it easier for startups to go public. However, it does not fully address the governance risks that arise when control and financial benefits overlap.

The broad direction of SEBI's reforms is unmistakable: a courageous move away from regulation-as-restraint towards regulation-as-catalyst. India's capital markets are being re-wired to facilitate innovation—not merely technologically, but structurally.

This article looks into some notable changes brought in by the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations 2021.

The article studies the legality of SARs as an alternative option to ESOPs.