Startup
Private Markets Intelligence
Guides on ESOP taxation, cap tables, secondary transactions, and India's private market ecosystem.
How to Model a Startup Exit Waterfall: A Step-by-Step Guide for Indian Founders
An exit waterfall is a calculation that distributes the proceeds from a company's sale or acquisition among its shareholders, in the order determined by each shareholder's
Anti-Dilution Provisions in Indian Startups: Full Ratchet vs Broad-Based Weighted Average
Anti-dilution provisions are a standard feature of CCPS terms in Indian institutional funding rounds. They protect investors when a company raises a future round at a lower price per share
Stacked vs Pari-Passu Liquidation Preferences in Indian Startups: How Seniority Affects Your Exit
When a startup raises multiple rounds of institutional funding, each new round typically introduces a new series of CCPS with its own preference terms. The relationship between those series, specifically
CCPS vs Equity Shares in Indian Startups: How Investor Share Structure Affects Your Exit
When Indian startups raise institutional funding, investors almost never take ordinary equity shares. They take Compulsorily Convertible Preference Shares, commonly known as CCPS. Understanding why investors use CCPS, what rights
What Is a Liquidation Event? How Indian Startups Define It in Their SHA
In Indian startup financing, the liquidation preference clause determines how exit proceeds are distributed among shareholders. But the liquidation preference clause only activates when a liquidation event occurs. The definition
Can You Set-off Capital Loss in Unlisted Shares? Complete 2026 Guide
How To Set-off Capital Losses in Unlisted Shares? Capital losses from unlisted share sales can only be set off against capital gains, not against salary, business, or other income types.
How to Report Foreign Company ESOPs in ITR Schedule FA (Complete Guide)
When Must You Report Foreign ESOPs in Schedule FA of ITR? For Indian resident employees, Schedule FA (Foreign Assets) in ITR-2 or ITR-3 must include any equity shares, stock options,
Advance Tax on Unlisted Share Sales: Complete Calculation Guide
When Must You Pay Advance Tax on Unlisted Share Sales? Advance tax is mandatory when your total tax liability for the financial year exceeds ₹10,000, including tax on capital
ITR-2 vs ITR-3 - Which Income Tax Form Should You Use for Unlisted Shares?
Difference Between ITR-2 and ITR-3? ITR-2 is for individuals and HUFs with capital gains but no business or professional income, making it the correct form for salaried employees, retirees, and
What is Authorised Capital?
What is Authorised Capital in a private company? Authorised capital (also called authorized share capital or nominal capital) is the maximum amount of share capital that a company is legally
What is Paid-Up Capital?
Paid-up capital is the actual amount of money that shareholders have paid to the company in exchange for shares, representing real cash (or assets) received by the company. For example,
Differences between Authorised Capital vs Paid-Up Capital
Authorised Capital is the maximum amount of share capital a company can issue (legal ceiling specified in MOA), while Paid-Up Capital is the actual money shareholders have paid to the