Mohan has been granted 200 options under ESOP scheme by a listed company. Mohan is in dire need of money; he intends to mortgage the options with the private moneylender to avail loan. Is intention of Mohan valid in law

As per the Regulation 9 of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, the option, stock appreciation right or SAR, or any other benefit granted to the employee shall not be pledged, hypothecated, mortgaged or otherwise alienated in any other manner. In the given case, a listed company has granted 200 options under ESOP scheme to Mohan and he intends to mortgage the options with private moneylender to avail loan. In view of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, the mortgage is not permissible for options granted by a listed company, hence the intention of Mohan is not valid in law.