**Policy Summary:**
This document details the Securities and Exchange Board of India (SEBI) Share Based Employee Benefits and Sweat Equity Amendment Regulations, 2025. These regulations, effective from the date of publication in the Official Gazette (September 8, 2025), amend the Securities and Exchange Board of India Share Based Employee Benefits and Sweat Equity Regulations, 2021.
The amendment introduces a new regulation, 9A, which addresses employees identified as promoters or part of the promoter group in a company's draft offer document for an initial public offering (IPO). Specifically, an employee granted options, Stock Appreciation Rights (SAR), or other benefits under any scheme at least one year prior to the draft offer document filing, is eligible to continue holding and/or exercising those benefits. This continuation is contingent upon adherence to the SEBI regulations, other applicable laws, and the original terms of the granted benefits.
The regulations are issued under the authority of sections 11, 11A, and 30 of the Securities and Exchange Board of India Act, 1992, sections 54 and 62 of the Companies Act, 2013, and rules 8 and 12 of the Companies Share Capital and Debentures Rules, 2014.
The notification number for these regulations is F. No. SEBI/LAD-NRO/GN/2025-26/2. Further information can be obtained from Amit Pradhan, Executive Director, Securities and Exchange Board of India. The original Securities and Exchange Board of India Share Based Employee Benefits and Sweat Equity Regulations, 2021, were published in the Gazette of India on August 13, 2021, vide No. SEBI/LAD-NRO/GN/2021/40.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): A regulatory body for the securities market in India. The notification is issued by SEBI.
Securities and Exchange Board of India Act, 1992: An act of the Indian Parliament that established the Securities and Exchange Board of India.
Companies Act, 2013: An act of the Indian Parliament concerning Indian company law.
Companies Share Capital and Debentures Rules, 2014: Rules pertaining to share capital and debentures as per the Companies Act.
Securities and Exchange Board of India Share Based Employee Benefits and Sweat Equity Regulations, 2021: Regulations issued by SEBI concerning share-based employee benefits and sweat equity.
Securities and Exchange Board of India Share Based Employee Benefits and Sweat Equity Amendment Regulations, 2025: Amendment regulations to the 2021 regulations concerning share-based employee benefits and sweat equity.
New Delhi: The city in India where The Gazette of India is published and where Government of India Press is located.
Mumbai, Maharashtra: City in India where SEBI is located, mentioned in the notification's dateline.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एxचxx.-GअID.H-0xx8x0 92025-266007
CG-MHxx-xEG-I0D8E0x9x2x 025-266007
असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 614] िई क्वदल्ली, सोमिार, जसतम्ब र 8, 2025/भाद्र 17, 1947
No. 614] NEW DELHI, MONDAY, SEPTEMBER 8, 2025/BHADRA 17, 1947
भारतीय प्रजतभजू त और जिजिमय बोडड
अजधसचू िा
म ंबई, 8 जसतम्ब र, 2025
भारतीय प्रजतभजू त और जिजिमय बोडड
(िये र आधाररत कमचड ारी फायद े और स्ट्िटे इजि टी) (सिं ोधि) जिजियम, 2025
फा. स.ं सबे ी/एलएडी-एिआरओ/िीएि/2025/262.—बोडड, 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 प्रदाि की गई
िजियों का प्रयोग करत े हुए, एतद्द्वारा भारतीय प्रजतभूजत और जिजिमय बोड ड (िेयर आधाररत कमडचारी फायदे और स्ट्िेट
इक्विटी) जिजियम, 2021 का संिोधि करिे के जलए जिम्नजलजखत जिजियम बिाता ह,ै अथाडत,् -
1. इि जिजियमों को भारतीय प्रजतभूजत और जिजिमय बोड ड(िेयर आधाररत कमडचारी फायदे और स्ट्िेट इक्विटी) (संिोधि)
जिजियम, 2025 कहा िा सकेगा ।
5966 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
2. ये जिजियम रािपत्र म ेंइिके प्रकाजित होिे की तारीख से लाग ू होंगे ।
3. भारतीय प्रजतभूजत और जिजिमय बोडड (िेयर आधाररत कमडचारी फायदे और स्ट्िेट इक्विटी) जिजियम, 2021 म,ें-
I. मौिूदा जिजियम 9 के बाद, जिम्नजलजखत िया जिजियम िोड़ा िाएगा, अथाडत,् -
“9क. िह कमचड ारी, जिस े ड्राफ्ट ऑफर डॉयमू टें (प्रारूप प्रस्ट्ताि दस्ट्ताििे ) म ें सप्रं ितकड (प्रोमोटर) बताया
गया हो या सप्रं ितकड समहू (प्रोमोटर ग्रप ) का जहस्ट्सा बताया गया हो
िह कमडचारी, जिसे क्वकसी कंपिी द्वारा इजिजियल पजललक ऑफररंग (आरंजभक सािडिजिक प्रस्ट्ताि) के सबं धं
में बोड डके पास दाजखल क्वकए गए ड्राफ्ट ऑफर डॉयूमेंट म ें“संप्रितडक (प्रोमोटर)” बताया गया हो या “संप्रितकड
समूह (प्रोमोटर ग्र प)” का जहस्ट्सा बताया गया हो, और जिसे ड्राफ्ट ऑफर डॉयूमेंट दाजखल क्वकए िािे की
तारीख स ेकम स ेकम एक िर् डपहल ेक्वकसी स्ट्कीम के तहत ऑप्िन्स (जिकल्प), एसएआर या कोई अन्य फायदा
क्वदया गया हो, िह उि ऑप्िन्स, एसएआर या क्वकसी अन्य फायदे को उिसे संबंजधत ितों आक्वद के अि सार
अपि े पास रख (होल्ड कर) सकेगा और/या उिका प्रयोग (उन्ह ेंएसरसाइज़) कर सकेगा, बिते क्वक उसे इि
जिजियमों और दसू रे लाग ूकाििू ी प्रािधािों का पालि करिा होगा ।”
अजमत प्रधाि, कायडपालक जिदिे क
[जिज्ञापि-III/4/असा./347/2025-26]
पाद रटप्पण :
1. भारतीय प्रजतभूजत और जिजिमय बोडड (िेयर आधाररत कमडचारी फायदे और स्ट्िेट इक्विटी) 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 े।
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, –[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
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.