SEBI Issued Share Based Employee Benefit Regulations

Introduction

The Securities and Exchange Board of India (SEBI), in the year 1999, had framed "Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999" (hereinafter "existing guidelines") which provides for the stock based incentive schemes to employees. On 28th October, 2014, SEBI has notified Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, ¹ (hereinafter "Regulations") the provisions of which shall be applicable on the following:

1. employee stock option schemes;
2. employee stock purchase schemes;
3. stock appreciation rights schemes;
4. general employee benefits schemes; and