SEBI announced that founders are now allowed to retain ESOPs post‑IPO.
I analyzed the FY 2026‑27 Union Budget and concluded that the reforms mainly help founders who are ready for a public‑market exit rather than those still seeking their first check.
Buybacks are now taxed as capital gains for shareholders (12.5% LTCG / 20% STCG for most non‑promoters).
Foreign individual investors (PROIs) can now hold up to 10% in listed Indian companies, up from 5%.
Overall PROI ceiling raised from 10% to 24%.
₹10,000 crore SME Growth Fund + ₹10,000 crore Fund of Funds for startups.
The budget leaves ESOP taxation unchanged and offers no new LP incentives, so early‑stage fundraising conditions remain largely the same.