ESOP
Querist :
Anonymous
(Querist) 06 June 2010
This query is : Resolved
Can anyone please share with me a draft format of ESOP scheme for a private limited company into consultancy business. Thanks
Raj Kumar Makkad
(Expert) 06 June 2010
While the traditional route for private equity firms is to buy a controlling stake in struggling, mature corporations and then try to turn them around, in an emerging economy such as India these firms act more like venture capitalists. They look for promising companies in industries ranging from tech to textiles and seek to give them a boost, doing everything from injecting more capital for expansion to holding the hand of management and providing strategic guidance. "Developing countries like India offer [private equity] opportunities that developed countries don't," says Ash Lilani, head of global markets for Silicon Valley Bank in Santa Clara, Calif., which funds the private equity and venture industry. "With the right capital and professional management, private equity players in India can invest early, expand companies, and make an impact on entire industry segments."
Of course, there is also a great deal of money to be made. That's why Blackstone Group recently elevated India to one of its key strategic hubs in Asia. Earlier this year, Blackstone hired several consulting firms, including McKinsey & Co., and looked at investing in various emerging markets. It chose India as the place to set up its next in-country office and intends to invest $1 billion in local companies, says Akhil Gupta, head of Blackstone in India.
India's chief advantage over countries such as China is that it offers investors better trained managers and more corporate transparency in the private sector. It also boasts the oldest stock market in Asia -- the 130-year-old Bombay Stock Exchange -- and the largest number of listed stocks, over 7,000. Most important, the courts are a fairly reliable arbiter of investors' rights. "India is more sophisticated than other Asian markets because of its more developed jurisprudence and relative sanctity of contracts," says Donald Peck, a managing partner in charge of the India office for Britain's Actis, which has successfully enforced a disputed contract.
True, there are significant downsides that still give foreigners pause. For all of its recent financial and regulatory reforms, the country remains mired in bureaucratic red tape and bedeviled by poor infrastructure. Plus, there are limits to foreign ownership in industries such as defense, news media, retail, and some forms of banking. A much-ballyhooed privatization process of state-run firms has been stalled by the current government, so big Indian and foreign private investors cannot exercise control over the juiciest public sector companies.
Querist :
Anonymous
(Querist) 14 June 2010
Can u pls. share a draft format of ESOP scheme for a private limited company into consultancy business. Thanks
