Relaxation from the requirement of minimum vesting period in case of death of employee(s) under SEBI (Share Based Employee Benefit) Regulations, 2014
Summary
SEBI issues a circular relaxing the minimum vesting period for employee stock options and SARs in the event of an employee's death. This exemption applies to deaths occurring on or after April 01, 2020, due to the COVID-19 pandemic situation. The relaxation allows benefits to vest immediately with legal heirs or nominees upon the date of death.
Text
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
this relaxation shall be available to all such employees who have deceased on or after April 01, 2020
This Circular is issued in exercise of powers conferred by Section 11(1) of the Securities and Exchange Board of India Act, 1992
Source: SecMarx — Relaxation from the requirement of minimum vesting period in case of death of employee(s) under SEBI (Share Based Employee Benefit) Regulations, 2014. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.