Capital markets regulator Sebi has imposed a penalty of Rs 1 lakh on Bharti Infratel, now known as Indus Towers, for flouting rules pertaining to employee stock option schemes (Esops).

In its order, Sebi found that Bharti Infratel violated the provisions of the SBEB (Share Based Employee Benefits) by not appropriating the excess 5,32,862 shares of the company within the stipulated timeline of March 31, 2017.

In its exemption application filed by the company in October 2019, Bharti Infratel informed Sebi that it has a surplus of 5,32,862 shares of the company in Esop Trust as on March 31, 2017, which could not be appropriated in terms of SBEB rules.

Bharti Infratel’s name was changed to Indus Towers in December 2020, following the merger of Bharti Infratel and Indus Towers.

As the shares acquired through the secondary market were locked in for a period of six months, the company instead issued fresh shares in FY 2015-16 against options that were exercised by employees.

These shares are the balance shares remaining in the Esop Trust that were acquired between February and March 2015.