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of <h1>Employees with stock options lack shareholder rights until options are exercised and shares issued per SEBI 2021 Regulations.</h1> An employee holding an option under the Employee Stock Option Scheme (ESOS) does not have the rights of a shareholder, such as receiving dividends or voting, until the option is exercised and shares are issued. This regulation is part of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, which governs the rights associated with stock options granted to employees.
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