The Securities and Exchange Board of India (SEBI) has issued the Share Based Employee Benefits and Sweat Equity (Amendment) Regulations, 2025, effective from September 8, 2025. The key change allows employees who are identified as “promoters” or part of the “promoter group” in a company’s draft offer document for an IPO to continue holding and/or exercising stock options, stock appreciation rights (SARs), or other benefits, provided these were granted at least one year before the filing of the draft document. This amendment aligns employee benefit continuity with regulatory compliance under SEBI and the Companies Act, 2013.
