Sunday, 2 November 2014

Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 notified on 28 October 2014



In the board meeting of Securities and Exchange Board of India ('SEBI') held in June 2014, SEBI had approved the proposal to review the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 applicable for listed companies and replace it with new regulations covering all employee benefit schemes dealing in shares.


On 28 October 2014, SEBI notified SEBI (Share Based Employee Benefits) Regulations, 2014.

These new regulations have been implemented for regulating all schemes introduced by companies for the benefit of their employees, involving dealing in shares (directly or indirectly) which are listed on a recognized stock exchange in India. The objective of the regulations is to facilitate smooth operation of such schemes and prevent any possible manipulation.
 

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