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Core Purpose

This notification introduces the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) (Amendment) Regulations, 2025, to amend the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Detailed Summary

The Securities and Exchange Board of India (SEBI) published the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) (Amendment) Regulations, 2025, in the Gazette of India on September 8, 2025, under F. No. SEBI/LAD-NRO/GN/2025/262. These regulations, effective from their publication date, amend the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, which were originally published on August 13, 2021, vide No. SEBI/LAD-NRO/GN/2021/40. The amendments are enacted under powers conferred by sections 11, 11A, and 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), read with sections 54 and 62 of the Companies Act, 2013 (18 of 2013), and rules 8 and 12 of the Companies (Share Capital and Debentures) Rules, 2014. A new regulation, 9A, is inserted, stipulating that an employee identified as a 'promoter' or part of the 'promoter group' in a draft offer document for an initial public offering, who was granted options, SAR, or any other benefit at least one year prior to filing the draft offer document, remains eligible to hold and/or exercise such benefits in accordance with their terms and subject to compliance with applicable regulations and laws.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-MH-E-08092025-266007 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 614] NEW DELHI, MONDAY, SEPTEMBER 8, 2025/BHADRA 17, 1947 SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 8th September, 2025 SECURITIES AND EXCHANGE BOARD OF INDIA (SHARE BASED EMPLOYEE BENEFITS AND SWEAT EQUITY) (AMENDMENT) REGULATIONS, 2025 F. No. SEBI/LAD-NRO/GN/2025/262.—In exercise of the powers conferred by sections 11, 11A and 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with sections 54 and 62 of the Companies Act, 2013 (18 of 2013) and rules 8 and 12 of the Companies (Share Capital and Debentures) Rules, 2014, the Board hereby makes the following regulations to amend the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, namely, – 1. These regulations may be called the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) (Amendment) Regulations, 2025. 2. They shall come into force from the date of their publication in the Official Gazette. 3. In the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, - I. After the existing regulation 9, the following new regulation shall be inserted, namely,- "9A. Employee identified as promoter or part of the promoter group in the draft offer document. An employee who is identified as a "promoter" or part of the "promoter group" in the draft offer document filed by a company with the Board in relation to an initial public offering, and who was granted options, SAR or any other benefit under any scheme at least one year prior to filing of the draft offer document, shall be eligible to continue to hold and/or exercise such options, SAR or any other benefit, in accordance with its terms and subject to compliance with these regulations and other applicable laws." AMIT PRADHAN, Executive Director [ADVT.-III/4/Exty./347/2025-26] Footnotes: 1. The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 were published in the Gazette of India on 13th August, 2021 vide No. SEBI/LAD-NRO/GN/2021/40. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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