SEBI Forms Expert Group To Review Rules Regarding Equity-Based Employee Benefits

The Securities and Exchange Board of India (SEBI) has set up an expert group to review the framework of share-based employee benefit and issue of sweat equity.

The seven-member expert group would be chaired by Sandip Bhagat Partner at S&R Associates, an update with SEBI showed.

The expert group would re-visit the framework of share-based employee benefit and suggest policy changes.

Further, the panel has been mandated to re-visit the framework of sweat equity regulations vis-a-vis the Companies Act, and recommend any policy changes.

They have to suggest whether it is advisable to combine both the regulations. In case, these norms can be combined, the panel would provide draft rules in this regard.

Sweat equity shares are generally issued by a company to its employees at a discount or for consideration other than cash.

Other members of the panel are Santosh Haldankar, company secretary of HDFC Bank; Vikram Shroff of Nishith Desai Associates and Narayan Shankar, company secretary of Mahindra & Mahindra. Pavan Vijay, founder of Corporate Professionals; M Sanaulla Khan, company secretary of Wipro; and SEBI's Chief General Manager Jeevan Sonparote are also members of the panel.