**Executive Summary**
This document is a notification from the Securities and Exchange Board of India (SEBI) regarding the second amendment to the Share Based Employee Benefits and Sweat Equity Regulations, 2021. The regulations are effective thirty days after their publication in the Official Gazette, which is dated December 3, 2025. Key changes involve the definition of "valuer" and the role of merchant bankers in valuation assignments.
**Key Points / Main Content**
* **Effective Date:**
* The regulations are effective 30 days after publication in the Official Gazette (December 3, 2025).
* **Amendment to Definitions:**
* The definition of "valuer" now aligns with the meaning given in Section 247 of the Companies Act, 2013, as amended.
* **Amendment to Valuation Process:**
* The term "a merchant banker" is replaced with "an independent registered valuer" in relation to valuation.
* A proviso is added, allowing merchant bankers to complete ongoing valuation assignments undertaken before the enforcement of these amendments, provided they are completed within nine months from the date of enforcement.
* **Omission of Sub-regulations:**
* Sub-regulations (2) and (3) of regulation 34 are removed.
**Impact Analysis**
**Stakeholder: Companies**
* **Impact:** Affected by the change in valuation requirements, particularly the shift from merchant bankers to independent registered valuers.
* **Action Required:** Ensure that valuations are conducted by independent registered valuers. If a merchant banker has already started a valuation, ensure that the assignment is completed within nine months of the amendment's effective date.
**Stakeholder: Merchant Bankers**
* **Impact:** Reduced role in valuations, as independent registered valuers are now required.
* **Action Required:** Complete any ongoing valuation assignments initiated before the amendment's effective date within the stipulated nine-month period.
**Stakeholder: Independent Registered Valuers**
* **Impact:** Increased role in valuations of share-based employee benefits and sweat equity.
* **Action Required:** Ensure compliance with the regulations and standards expected for valuations in this context.
Key Entities Referenced
Securities and Exchange Board of India: The regulator issuing the amendment.
Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021: The principal regulations being amended.
Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) (Second Amendment) Regulations, 2025: The regulation introduced in this document.
Companies Act, 2013: Law relating to companies.
Mumbai: Location of Securities and Exchange Board of India.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एच.-अ.-04122025-268233
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 786] िई दिल्ली, ब धिार, दिसम्ब र 3, 2025/अग्रहायण 12, 1947
No. 786] NEW DELHI, WEDNESDAY, DECEMBER 3, 2025/AGRAHAYANA 12, 1947
भारतीय प्रजतभजू त और जिजिमय बोडड
अजधसचू िा
म ंबई, 3 दिसम् बर, 2025
भारतीय प्रजतभजू त और जिजिमय बोडड
(िये र आधाररत कमचड ारी फायि े और स्ट्िटे इदिटी) (िसू रा सिं ोधि) जिजियम, 2025
फा. स.ं सबे ी/एलएडी-एिआरओ/िीएि/2025/284.— बोड,ड कंपिी अजधजियम, 2013 (2013 का 18) की धारा
54 एिं धारा 62 तथा कंपिी (िेयर पूूँिी और जडबेंचर) जियम, 2014 के जियम 8 एि ं जियम 12 के साथ परित भारतीय
प्रजतभूजत और जिजिमय बोडड अजधजियम, 1992 (1992 का 15) की धारा 11, धारा 11क एि ंधारा 30 द्वारा प्रिाि की गई
िजियों का प्रयोग करत े हुए, एतद्द्वारा भारतीय प्रजतभूजत और जिजिमय बोड ड (िेयर आधाररत कमडचारी फायि े और स्ट्िेट
इदिटी) जिजियम, 2021 का संिोधि करिे के जलए जिम्नजलजखत जिजियम बिाता ह,ै अथाडत,् -
1. इि जिजियमों को भारतीय प्रजतभूजत और जिजिमय बोडड (िेयर आधाररत कमडचारी फायि े और स्ट्िेट इदिटी)
(िसू रा संिोधि) जिजियम, 2025 कहा िा सकेगा ।
8122 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
2. ये जिजियम रािपत्र म ेंइिके प्रकाजित होिे की तारीख स े तीसिें दिि लाग ूहोंगे ।
3. भारतीय प्रजतभूजत और जिजिमय बोडड (िेयर आधाररत कमडचारी फायि ेऔर स्ट्िेट इदिटी) जिजियम, 2021 म,ें-
I. जिजियम 2 म,ें उप-जिजियम (1) म,ें मौिूिा खडं (बब) के स्ट्थाि पर जिम्नजलजखत खंड आ िाएगा, अथातड ्,-
“बब. “मूल्यांकक” (िैल्यअू र) का िही अथ ड होगा, िो कंपिी अजधजियम, 2013 (2013 का 18) की धारा
247 (समय-समय पर यथा संिोजधत) म ेंइसके जलए दिया हुआ ह;ै ”
II. जिजियम 34 में,-
i. उप-जिजियम (1) में, िब्िों तथा जचह्ि “मचेंट बैंकर द्वारा दकया िाएगा।” के स्ट्थाि पर िब्ि तथा
जचह्ि “एक स्ट्ितंत्र रजिस्ट्टर मूल्यांकक द्वारा दकया िाएगा:” आ िाएूँगे, और उसके बाि जिम्नजलजखत
परंत क िोड़ा िाएगा,-
“परंत यह दक मचेंट बैंकर मूल्यांकि का िो काय ड भारतीय प्रजतभूजत और जिजिमय बोड ड
(िेयर आधाररत कमडचारी फायि े और स्ट्िेट इदिटी) (संिोधि) जिजियम, 2025 के लागू होिे स े
पहल े अपिे हाथों म ें ल े च का हो और िो पूरा ि हुआ हो, उसे िह कायड उपरोि जिजियमों के लाग ू
होिे की तारीख स े िौ महीिों की अिजध के भीतर परू ा करिा होगा ।”
ii. मौिूिा उप-जिजियम (2) और (3) हट िाएगूँ े ।
अजमत प्रधाि, कायडपालक जिििे क
[जिज्ञापि-III/4/असा./522/2025-26]
पाि रटप्पण :
1. भारतीय प्रजतभूजत और जिजिमय बोड ड (िेयर आधाररत कमडचारी फायि े और स्ट्िेट इदिटी) जिजियम, 2021,
स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2021/40, द्वारा 13 अगस्ट्त, 2021 को भारत के रािपत्र म ेंप्रकाजित हुए थ।े
2. भारतीय प्रजतभूजत और जिजिमय बोडड बोडड (िेयर आधाररत कमडचारी फायिे और स्ट्िेट इदिटी) जिजियम, 2021,
तत्पश्चात् –
क) 8 जसतम्बर, 2025 को भारतीय प्रजतभूजत और जिजिमय बोडड (िेयर आधाररत कमडचारी फायि ेऔर स्ट्िेट इदिटी)
(संिोधि) जिजियम, 2025, फा. स.ं सेबी/एलएडी–एिआरओ/िीएि/2025/262, द्वारा
संिोजधत हुए थे ।[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 3rd December, 2025
SECURITIES AND EXCHANGE BOARD OF INDIA
(SHARE BASED EMPLOYEE BENEFITS AND SWEAT EQUITY) (SECOND AMENDMENT)
REGULATIONS, 2025
F. No. SEBI/LAD-NRO/GN/2025/284.─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) (Second Amendment) Regulations, 2025.
2. They shall come into force on the thirtieth day 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. In regulation 2, in sub-regulation (1), the existing clause (ww) shall be substituted with the following
clause, namely,-
“ ww. “valuer” shall have the same meaning as assigned to it under section 247 of the Companies Act,
2013 (18 of 2013) as amended from time to time;”
II. In regulation 34,-
i. in sub-regulation (1), the words and symbol “a merchant banker.” shall be substituted with the words
and symbol “an independent registered valuer:”, and thereafter the following proviso shall be inserted,-
“Provided that a merchant banker shall complete the ongoing valuation assignment which has been
undertaken prior to the coming into force of the Securities and Exchange Board of India (Share Based
Employee Benefits and Sweat Equity) (Amendment) Regulations, 2025 within a period of nine months
from the date of coming into force of the said regulations.”;
ii. the existing sub-regulations (2) and (3) shall be omitted.
AMIT PRADHAN, Executive Director
[ADVT.-III/4/Exty./522/2025-26]
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.
2. The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations,
2021 was amended on-
a) September 8, 2025 by the Securities and Exchange Board of India (Share Based Employee Benefits
and Sweat Equity) (Amendment) Regulations, 2025, vide notification No. SEBI/LAD-
NRO/GN/2025/262.
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