09 Jan 2017

The Securities and Exchange Board of India (“SEBI”), the regulator of securities market in India, had during its meeting held on September 23, 2016, expressed concerns over compensation agreements and profit sharing agreements such as side agreements / reward agreements executed between private equity (“PE”) firms and top personnel and key managerial personnel (KMP) of listed entities. As per SEBI, when such agreements are executed without any prior approval of the shareholders, it could lead to unfair practices.>>

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