Regulatory Alerts2025-09-08
Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021
The Securities and Exchange Board of India issued these regulations to govern sweat equity shares and all share-based employee benefit schemes for listed companies in India. The framework mandates implementation through irrevocable trusts with strict limits on secondary acquisitions and defines eligibility criteria for employees and directors. It establishes comprehensive rules for scheme administration, vesting, exercise periods, and disclosure obligations to prevent market manipulation.
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