Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 Chapter II SCHEMES-IMPLEMENTATION AND PROCESS
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Pre-IPO employee share schemes require regulatory conformity and shareholder ratification before fresh grants are made. Pre-IPO employee share schemes must conform to these Regulations and be ratified by shareholders after the IPO before any fresh grants; changes to terms ... Summary
Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021
Pre-IPO employee share schemes require regulatory conformity and shareholder ratification before fresh grants are made.
Pre-IPO employee share schemes must conform to these Regulations and be ratified by shareholders after the IPO before any fresh grants; changes to terms require shareholder approval by special resolution except for corporate-action adjustments. Companies seeking to list shares issued under ESOS, ESPS or SARs must obtain in-principle exchange approval prior to grant. Disclosure obligations attach where a holding company issues benefits to subsidiary employees and where reimbursements occur, and a merchant banker must be appointed to implement schemes until in-principle approval is obtained.
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