alleryStart learning →Which outstanding options do not block an IPO under Reg 5(2)?
ADebenture conversion rights
BWarrants to promoters
COptions held by lenders
DEmployee stock options
Answer & Solution
Correct answer: D. Employee stock options
The proviso to Reg 5(2) exempts options granted to employees under a compliant employee stock option scheme.
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Related questions
Under the Reg 5 Explanation, a past debarment stops barring an IPO when?Reg 183(2)(a): minimum size of an IDR issue?Reg 183(1)(a): an IDR issuer must be listed in its home country for at least?Reg 180: the largest share any single QIP allottee may receive?Reg 180: minimum QIP allottees when the issue is up to Rs 250 crore?Reg 172(3): minimum gap between successive QIPs?Reg 172(1)(b): QIP equity shares must have been listed at least how long?Reg 172(1)(a): QIP allotment must follow the special resolution within?