SEBI Amends Share Based Employee Benefits Regulations

The Securities and Exchange Board of India has issued the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) (Amendment) Regulations, 2025.

Under these regulations, employees who are promoters or belong to the promoter group in the draft offer of an initial public offering (IPO) will be permitted to continue holding or exercising stock appreciation rights and other benefits.

Introduced as an amendment to the SEBI Act,1992 and certain provisions of the Companies Act, 2013, these regulations provide a clear picture of the employee stock benefits for individuals who are identified as promoters in accordance with the previously availed benefits, as well as the present regulations.