Securities Exchange Board of India (SEBI)

1. Requirements specified under the SEBI (Share Based Employee Benefits) Regulations, 2014

The Securities Exchange Board of India (SEBI) vide its Circular No. CIR/CFD/POLICY CELL/2/2015 dated June 16, 2015 has specified certain processes/disclosure requirements under the SEBI (Share Based Employee Benefits) Regulations, 2014. The following necessary guidelines are being issued:

  • Regulation 3(3) – Minimum Provisions in Trust Deed
  • Regulation 5(3) – Terms and Conditions of schemes to be formulated by the Compensation Committee
  • Regulation 6(2) – Contents of the explanatory statement to the notice and resolution for shareholders meeting
  • Regulation 10(b) – Information required in the statement to be filed with Stock Exchange(s)
  • Regulation 10(c) – Format of notification for issue of shares
  • Regulation 14 – Disclosures by the board of directors
  • Regulations 16(2) and 23(3) – Disclosure Document

2. Database for Distinctive Number (DN) of Shares

The Securities Exchange Board of India (SEBI) has vide its circular CIR/MRD/DP/ 10 /2015 dated June 05, 2015 made certain recommendations with regard to database for Distinctive Number (DN) of Shares.

  • Since share capital reconciliation of the entire issued capital of the company is a mandatory requirement under Regulation 55 of the SEBI (Depositories & Participants) Regulations, 1996, the Depository System Review Committee (DSRC) constituted by SEBI recommended that the depositories may maintain complete reconciled record of total issued and listed capital, including both physical and dematerialized shares.
  • In order to ensure centralised record of all securities, it has been decided that the Depositories shall create and maintain a database of distinctive numbers (DN) of equity shares of listed companies with details of DN in respect of all physical shares and overall DN range for dematerialised shares.

 

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