Prudent Corporate Advisory Services' promoter, Sanjay Shah, has marked his company's 25th anniversary with a unique gesture—gifting 1,75,000 equity shares worth about Rs 33 crore to 650 employees, including personal staff. This move was made possible after Shah received a special exemption from the Securities and Exchange Board of India.
Shah, who holds a 42% stake in Prudent Corporate Advisory Services, India's fifth-largest mutual fund distributor, sought SEBI's approval to distribute the shares without classifying the recipients as part of the promoter group, according to The Economic Times.
Under existing regulations, such a classification would have impacted the company's promoter holding structure and control.
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The capital markets regulator, after reviewing Shah's appeal, granted a one-time exemption, clarifying that the decision should not be considered a precedent.
Shah said that reclassifying the employees as promoters would dilute the essence of his gesture and create unnecessary confusion for investors. He also clarified that the shares were not being distributed to key managerial personnel but to long-serving employees who had been with him and Prudent for at least three years.
According to the ET report, Shah expressed his desire to make employees feel valued and surprise them with this gift. “They are an integral part of the company's journey, and I wanted to show my appreciation in a meaningful way,” he told.
Shah's total stake in Prudent Corporate Advisory Services is valued at approximately Rs 7,797 crore, with his family, including his two daughters, collectively holding an additional 13%.
This move sets a new benchmark in corporate employee appreciation, highlighting how business leaders can reward long-term loyalty and contribution.
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