SMEs form the backbone of the Indian Economy. Considering the role of SMEs in nation building and their potential in terms of generating employment and income as well as fostering innovation and enterprise, it seemed imperative that necessary enabling environment was provided for these enterprises to flourish. Hence, the Finance Minister in his budget speech on Feb 28, 2013 announced that “Small and Medium Enterprises (SMEs), including start-up companies, will be permitted to list on the SME exchange without being required to make an initial public offer (IPO), but the participation will be restricted to informed investors. This will be in addition to the existing SME platform in which listing can be done through an IPO and with wider investor participation”. Pursuant to this, SEBI has come up with a guideline in Chapter XC of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 on such Listing of SMEs on ITP without an IPO.

Securities and Exchange Board of India (SEBI) in its Board meeting held on 19th November, 2014 in Mumbai, deliberated on and approved a replacement of the Insider Trading Regulations. It introduced a new regulation on Listing Obligations and Disclosure Requirements, which will seek to replace the listing agreement. Apart from this, it also approved major changes in the Delisting Regulations, Mutual Fund Regulations, Foreign Venture Capital Investors Regulations, etc. These changes are yet to be notified. This article will provide you with a summary of key amendments approved by SEBI based on the press release.

SEBI has notified new regulations for share based employee benefits on 28th October, 2014, applicable from the date of its notification. These regulations have replaced the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.

SEBI had earlier amended the ESOP guidelines through Circular No.CIR/CFD /DIL/3/2013, dated 17 January 2013, to prohibit companies from buying/selling its own securities in the secondary market. SEBI had given the listed companies having such ESOP schemes the timeline till 30th June 2013 for alignment of their scheme with the amended guidelines. Thereafter the timeline was further extended to 31 December 2013 through Circular No. CIR/CFD/DIL/7/2013, dated 13 May 2013. Subsequently, in Press Release 63/ 2014 dated 19th June, 2014, SEBI had approved the proposals to review the existing regulatory framework on ESOP guidelines to address issues regarding composition of Trusts, facilitate secondary market acquisitions, enhanced disclosures and better enforceability, which have now been notified as New Regulations.