Summary
- New regulations for ESOP trust buybacks in India have been outlined, affecting both unlisted and listed trusts.
- Unlisted trusts are permitted to buy back within a 5% cap under Rule 16, while listed trusts must adhere to SEBI's 2% annual limit.
- Sellers will be subject to capital gains tax starting April 2026, marking a significant change in the taxation landscape.
- These rules aim to streamline the buyback process and clarify obligations for trusts and sellers alike.
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