The Securities and Exchange Board of India on 15th June 2021 has notified that the minimum vesting period of one year shall not apply in case of death (for any reason) of an employee and in such instances all the options, SAR or any other benefit granted to such employee(s)shall vest with his/herlegal heir or nominee on the date of death of the employee.
The above relaxation shall be available to all such employees who have deceased on or after 1st April, 2020.
Presently, regulation 18(1) and 24(1) of the SEBI (Share Based Employee Benefit) Regulations, 2014 (“SBEB Regulations”) provides that there shall be a minimum vesting period of one year in case of employee stock options (“options”) and stock appreciation rights (“SAR”).
