POWER TO RELAX STRICT ENFORCEMENT OF THE REGULATIONSSecurities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021
POWER TO RELAX STRICT ENFORCEMENT OF THE REGULATIONSSecurities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021
Regulation 3 - Implementation of schemes through trust.
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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Trust-based scheme implementation requires shareholder approval, trustee eligibility, and limits on secondary acquisitions and transfers. Trust-based implementation of employee share schemes must be decided at shareholder approval and, if changed, require fresh special-resolution approval; ... Summary
Trust-based scheme implementation requires shareholder approval, trustee eligibility, and limits on secondary acquisitions and transfers.
Trust-based implementation of employee share schemes must be decided at shareholder approval and, if changed, require fresh special-resolution approval; trusts are mandatory for schemes involving secondary acquisition or gifts. A single trust may manage multiple schemes but must keep separate records, file the trust deed with recognised exchanges, observe trustee eligibility and voting prohibitions, restrict transactions to delivery-based secondary acquisition subject to annual and aggregate ceilings, maintain minimum holding periods, follow specified appropriation timelines, permit limited off-market or secondary market sales for prescribed purposes, and comply with disclosure and insider-trading obligations.
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