29/05/2026
Many startup leaders and senior executives in India assume that once their options are vested and exercised, the hard part is over. But there is a hidden regulatory trap in SEBI’s framework that catches top talent off guard every single year.
If you resign, retire, or separate from a company even a few weeks before its formal IPO allotment date, you lose your statutory "employee" status under SEBI rules.
The result? Your hard-earned equity instantly loses its safe-harbor immunity. Instead of being fully liquid on listing day, your shares get hit with a mandatory 6-month lock-in period.
Don't let a timing mismatch lock up your wealth. Read our full advisory breakdown to secure your liquidity strategy:
👇 Read the full article here:
https://corporatesphere.com/pre-ipo-esops-why-resigning-early-could-lock-up-your-wealth/