SEBI approves issue of up to 10,00,00,000 fresh equity shares to employees under ESPS for MPS compliance
Bank received SEBI letter dated 19.10.2026 approving issue of up to 10,00,00,000 (Ten Crore) fresh equity shares to eligible employees under ESPS.
By ScoutQuest · · 2 min read
- Shares approved for issuance
- up to 10,00,00,000 (Ten Crore) fresh equity shares
- SEBI letter date
- 19.10.2026
- Applicable regulation
- SEBI SBEB Regulations, 2021
What was announced
- The Bank has received a SEBI letter dated 19.10.2026 conveying approval for issuance of up to 10,00,00,000 (Ten Crore) fresh equity shares directly to eligible employees under an Employee Stock Purchase Scheme (ESPS).
- The letter refers to the Bank's request dated August 11, 2026 and subsequent correspondence in the matter.
- SEBI has allowed this as a method under Sr. No. 10 of para 3 of its circular dated February 03, 2023, to comply with Minimum Public Shareholding (MPS) norms under Rule 19A of the Securities Contracts (Regulation) Rules, 1957.
Why employees and MPS
MPS norms require a listed company to keep a minimum portion of its shares in public hands. Shares allotted to employees under an ESPS are held by employees rather than by the promoter, so SEBI has acceded to the Bank's request to use this route for meeting the MPS requirement. The issuance is subject to compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and other applicable regulatory requirements.
What it means for existing shareholders
- Up to 10,00,00,000 new equity shares would be issued, which adds to the Bank's total equity share capital.
- Because these are fresh shares, an existing shareholder's percentage holding can reduce — this is dilution, the normal effect of a company issuing new shares.
- The shares go to eligible employees of the Bank, as defined under the ESPS framework.
Scope of the approval
- SEBI's letter states that the approval is specific to the present case and shall not be treated as a precedent.
- The Bank was advised to intimate the contents of the letter to the stock exchanges under Regulation 30 of the SEBI (LODR) Regulations, 2015; this exchange disclosure is that intimation.
How to read it
The news is an approval from the regulator for a proposed route to meet public shareholding norms, not a completed share issue. For a retail shareholder, the two things that matter are the size of the issue — up to 10,00,00,000 shares — and the fact that they are fresh equity shares, which increases the share base.
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More numbers
- Fresh equity shares approved for issuance to eligible employees10,00,00,000
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