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 not justified in rejecting registered valuer’s report without reference to DVO – ITAT
- FCRA specifies list of 105 purposes to be selected for which registration is applied
- Withholding tax u/s 40(a)(i) not required on cost-to-cost reimbursement made to parent company
- Temporarily blocking public access to Telegram App not disproportionate – Delhi High Court
- High Court explains the meaning of term ‘enterprise’ appearing in section 80IA
 under SBEB Regulations){kind=link}