SEBI relaxes minimum vesting period in case of death of employee(s) under SBEB Regulations
Relaxation from the requirement of minimum vesting period in case of death of employee(s) under SEBI (Share Based Employee Benefit) Regulations, 2014
Presently, regulation 18(1) and 24(1) of the SEBI (Share Based Employee Benefit) Regulations, 2014 (“SBEB Regulations”) provides that there shall be a minimum vesting period of one year in case of employee stock options (“options”) and stock appreciation rights (“SAR”).
Regulation 9(4) of the SBEB Regulations provides that in the event of death of the employee while in employment, all the options, SAR or any other benefit granted under a scheme till such date shall vest in the legal heirs or nominees of the deceased employee.
In view of the COVID-19 pandemic situation, SEBI has issued circular no. SEBI/HO/CFD/DCR2/CIR/P/2021/576 dated 15th June 2021 in order to provide relief to the families of the deceased employees of listed companies, has decided that the provisions under the SBEB Regulations relating to minimum vesting period of one year shall not apply in case of death (for any reason) of an employee and in such instances all the options, SAR or any other benefit granted to such employee(s) shall vest with his/her legal heir or nominee on the date of death of the employee.
The above relaxation shall be available to all such employees who have deceased on or after April 01, 2020.
- AO took a reasonable stand that 25 kg written in WhatsApp chat was 25 lakh – ITAT
- Shareholders can’t be taxed for income from properties owned by the company – HC
- Jurisdictional error in reassessment approval can’t be shielded by the law of limitation
- ITAT ought to remanded whole matter of bogus purchases instead of profit determination
- Where proceedings u/s 153C barred by limitation, AO can’t invoke section 148 & 148A
 under SBEB Regulations){kind=link}