SEBI Circular Number: SEBI Circular No. CIR/CFD/DIL/7/2013 dated May 13, 2013
Ref: SEBI Circular No. CIR/CFD/DIL/3/2013 dated January 17, 2013
i. The circular No. CIR/CFD/DIL/3/2013 dated January 17, 2013 is applicable to all employee benefit schemes involving the securities of the company provided that the schemes are set up, managed or financed by the company directly or indirectly. Thus, the circular shall be applicable if any of the following conditions are satisfied:
a) if the company has set up the scheme or the trust/agency managing the scheme or
b) if the company has direct or indirect control over the affairs of the scheme or the trust/agency managing the scheme; or
c) if the company has extended any direct or indirect financial assistance to the employee benefit schemes or the trust/agency managing such schemes.
1. The amendment to Equity Listing Agreement through insertion of Clause 35 C mandated that all the employee benefit schemes involving the securities of the company shall be in compliance with SEBI (ESOS and ESPS) Guidelines, 1999 and any other guidelines, regulations etc. framed by SEBI in this regard. The said clause also required that all the employee benefit schemes already framed and implemented by the company involving dealing in the securities of the company, before the insertion of this clause shall be aligned with and made to conform to SEBI (ESOS and ESPS) Guidelines, 1999 by June 30, 2013.
2. The amendment to SEBI (ESOS and ESPS) Guidelines 1999 also provided that no SOS/ESPS schemes shall involve acquisition of securities of the company from the secondary market.
For further information with regard to the circular pl follow the link: http://www.sebi.gov.in/sebiweb/