SEBI's New Regulations For Share Based Employee Benefits, Sweat Equity: EY
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The Securities and Exchange Board of India has notified SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 on August 13, 2021.
These regulations have merged the erstwhile SEBI (Issue of Sweat Equity) Regulations, 2002 and SEBI (Share Based Employee Benefits) Regulations, 2014, into a single regulation.
Some of the key changes implemented are as under:
Change in the definition of 'employee',
Coverage of employees of group companies including associate company,
Option for companies to change the manner of administration from direct route to trust route and vice versa, subject to conditions,
Increase in time limit for appropriation of shares acquired by the trust under secondary acquisition,
Relaxation to vesting conditions and lock-in requirements in specific circumstances.
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