SEBI has issued a discussion paper on ‘Review of guidelines governing stock related employee benefit schemes‘, for public comments.
SEBI has issued SEBI (ESOS & ESPS) Guidelines, 1999 to enable listed companies to reward their employees through stock option schemes and stock purchase schemes. Based on the requests/ suggestions/ recommendations received from various market participants, it is proposed to replace the extant guidelines with a set of regulations to ensure better enforceability, provide for a regulatory framework for all kinds of employee benefit schemes involving securities of the company, address the concerns raised with regard to composition of employee welfare trusts, disclosures, etc. and to enable secondary market transactions with adequate safeguards. The recommendations based on which regulations are to be framed are placed as Annexure to the discussion paper.
Public comments on the said recommendations may please be e-mailed on or before December 05, 2013, to firstname.lastname@example.org or sent, by post, to:-
Shri. Amit Tandon
Deputy General Manager
Corporation Finance Department
Securities and Exchange Board of India
Plot No. C4-A, “G” Block
Bandra Kurla Complex
Bandra (East), Mumbai – 400 051
Ph: +912226449373/ +912226449334
The discussion paper is available here for download: Review of guidelines governing stock related employee benefit schemes