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[Cites 0, Cited by 0] [Section 3] [Entire Act]

Securities And Exchange Board Of India - Subsection

Section 3(11) in Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014

(11)The total number of shares under secondary acquisition held by the trust shall at no time exceed the below mentioned prescribed limits as a percentage of the paid up equity capital as at the end of the financial year immediately prior to the year in which the shareholder approval is obtained for such secondary acquisition:
Sr. No. Particulars Limit
A for the schemes enumerated in Part A, Part B orPart C of Chapter III of these regulations 5%
B for the schemes enumerated in Part D, or Part Eof Chapter III of these regulations 2%
C for all the schemes in aggregate 5%
Explanation 1. - The above limits shall automatically include within their ambit the expanded capital of the company where such expansion has taken place on account of corporate action including issue of bonus shares, split or rights issue.Explanation 2. - If a company has multiple trusts and schemes, the aforesaid ceiling limit shall be applicable for all such trusts and schemes taken together at the company level and not at the level of individual trust or scheme.Explanation 3. - The above ceiling limit will not be applicable where shares are allotted to the trust by way of new issue or gift from promoter or promoter group or other shareholders.Explanation 4. - In the event that the options, shares or SAR granted under any of the schemes exceeds the number of shares that the trust may acquire through secondary acquisition, then such shortfall of shares shall be made up by the company through new issue of shares to the trust in accordance with the provisions of new issue of shares under the applicable laws.