Securities and Exchange Board of India has amended the guidelines for employees stock option schemes to enhance disclosures and remove operational bottlenecks.

The regulator had set up a panel under the chairmanship of J R Varma to review ESOP guidelines, 1999 due to developments in the market and representations by the corporates, SEBI said in a release on Monday.

After considering the views of the panel as well as the public, the board has approved certain modifications to the ESOP guidelines, SEBI said.

The listed companies, merchant bankers and stock exchanges should ensure compliance with the amended guidelines.

The amendment to the guidelines except some provisions like listing of shares and filing information about ESOP would come into operation with immediate effect, it said.

For the listing of shares issued pursuant to ESOS or employees' stock purchase scheme, the company should apply to the Central Listing Authority and obtain in principle approval from stock exchanges where the shares would be listed.