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Why Founders Once Hated Being Called ‘Promoters’

3-year share lock-in Lost their ESOPs Too low ownership (often <10%)

Why SEBI Changed the Rules

Simple: No promoter = No accountability Investors asked: “If founders won’t take responsibility, why should we invest?” SEBI listened.

The Paytm Wake-Up Call

Vijay Shekhar Sharma (9.1% stake) skipped promoter tag, grabbed 21M ESOPs.

How SEBI Made the Promoter Tag Founder-Friendly

Lock-in reduced to 18 months  Promoters can now keep ESOPs  “Person in Control” concept introduced  Flexible 20% promoter contribution rule

The New Era of Promoter-Led IPOs

Lenskart – Founders hold 20%, IPO ₹7,278 Cr Ather Energy – 51.8% promoter stake Bluestone – Founder keeps 17% Commitment = Confidence.

What This Means for YOU as an Investor

Clear accountability Long-term founder commitment Better governance & transparency Your money is safer

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Dive deeper into SEBI’s game-changing IPO rules, and discover what it means for your investments.