SECP allows start-ups and local firms to issue employee stock option system staff

SECP also allowed SECP to issue an Options plan for workers, making it easier for start-ups and SMEs. The ESOP is a traditional way of recruiting, motivating, and retaining workers. employee option plan (ESOP). However, previously only public firms could implement this option plan.

Stock Option Plans encourage workers to invest in and succeed without beginning their own start-up enterprise, which requires a great deal of investment and risk.

Providing ownership rights is a step towards helping businesses, particularly small and medium-sized enterprises, and startups, give workers non-monetary incentives for their intelligence services.

However, where any or any of the securities being sold are rejected or are not subscribed, such shares can be offered to its employees under fixed contractual terms in compliance with section83(1)(a) of the Companies Act of 2017.

It is highly rewarding and raises their morale for workers to own a business they work for. According to this, start-ups often profit as they can conduct their company smoothly. This practice of selling employee shares is very popular worldwide for startups because they cannot pay high salaries.

SECP strives to boost the market growth in Pakistan by providing clearance to private limited companies. We will see the results over time.

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