Regulatory Alerts2025-12-04
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 that schemes be implemented either directly or through an irrevocable trust, subjecting trusts to strict limits on secondary acquisitions and prohibiting derivative trading. It establishes comprehensive definitions for key terms and outlines eligibility criteria for employees while ensuring compliance with insider trading and disclosure norms.
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