Securities And Exchange Board Of India - Subsection
Section 3(15) in Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014
(15)The trust shall not become a mechanism for trading in shares and hence shall not sell the shares in secondary market except under the following circumstances:(a)cashless exercise of options under the scheme covered by Part A of Chapter III of these regulations;(b)on vesting or exercise, as the case may be, of SAR under the scheme covered by Part C of Chapter III of these regulations;(c)in case of emergency for implementing the schemes covered under Part D and Part E of Chapter III of these regulations, and for this purpose -(i)the trustee shall record the reasons for such sale; and(ii)money so realised on sale of shares shall be utilised within a definite time period as stipulated under the scheme or trust deed.(d)participation in buy-back or open offers or delisting offers or any other exit offered by the company generally to its shareholders, if required;(e)for repaying the loan, if the un-appropriated inventory of shares held by the trust is not appropriated within the timeline as provided under sub-regulation (12) of this regulation;(f)winding up of the scheme(s); and(g)based on approval granted by SEBI to an applicant, for the reasons recorded in writing in respect of the schemes covered by Part A or Part B or Part C of Chapter III of these regulations, upon payment of a non-refundable fee of rupees one lakh along with the application by way of a banker's cheque or demand draft payable at Mumbai in favour of the Board.
