Which of the following statements is/are correct with reference to ‘the ‘SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021’?

Which of the following statements is/are correct with reference to ‘the ‘SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021’?

A. Companies will now be allowed to provide share-based employee benefits to employees, who are exclusively working for such a company.

B. It also permit companies to transfer excess shares held by a trust upon its winding up, to other share-based employee benefit schemes, subject to approval of the shareholders for such transfer.

C. Both A & B

D. None of these

Explanation:

The Securities and Exchange Board of India approved the merger of the SEBI (Share Based Employee Benefits) Regulations, 2014 (SBEB Regulations) and the SEBI (Issue of Sweat Equity) Regulations, 2002 (Sweat Equity Regulations) into the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Companies will now be allowed to provide share-based employee benefits to employees, who are exclusively working for such a company or any of its group companies including a subsidiary or an associate. It also permit companies to transfer excess shares held by a trust upon its winding up, to other share-based employee benefit schemes, subject to approval of the shareholders for such transfer.