SEBI Amends Share-Based Employee Benefits Regulations for Promoter Employees in IPOs

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Sep 30, 2025

SEBI Amends Share-Based Employee Benefits Regulations for Promoter Employees in IPOs

SEBI has, by way of a Notification dated September 8, 2025, amended the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, effective from September 8, 2025. The amendment permits employees identified as promoters or forming part of the promoter group in a company’s draft offer document for an Initial Public Offering (‘IPO’), to continue to hold and/ or exercise any options, stock appreciation rights, or other share-based benefits (‘Employee Benefits’) under any scheme provided that such Employee Benefits were granted at least one year prior to the filing of the draft offer document, subject to compliance with prescribed conditions.

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