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SEBI SBEB Regulations Compliance

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: Verify Credentials →

We draft and adopt: the scheme, special resolution and explanatory statement.

We file: in-principle approval, grant and exercise disclosures and annual reports.

We handle: pre-IPO ratification, Regulation 9A and the LODR website disclosure.

Engagement: managed SBEB compliance from Rs 49,999 (Exl GST and Govt. Charges).

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    Listed companies and boards trust Patron Accounting to run their full SEBI SBEB compliance programme, from scheme adoption and pre-IPO ratification to Regulation 9A and the annual disclosures.

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    What We Deliver

    📌 TL;DR - SEBI SBEB Regulations Compliance Services at a Glance

    We manage your listed company's full SBEB compliance: scheme adoption, shareholder approval, pre-IPO ratification, Regulation 9A, and every disclosure and annual filing. One team, one accountable programme.

    SBEB compliance, fully managed. Patron Accounting runs your listed company's compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations 2021 end to end: scheme design, shareholder approval, pre-IPO ratification, the new Regulation 9A treatment, and every disclosure and annual filing, so your board and secretarial team can sign off with confidence.

    For a listed company, an ESOP is a continuous compliance obligation, not a one-time event. The SBEB Regulations govern the scheme from design through every grant, exercise and annual report, and the September 2025 amendment added Regulation 9A on founder ESOPs. We own the whole programme so nothing is missed.

    Content is reviewed quarterly for accuracy.

    What the SBEB Regulations Require

    The SEBI (Share Based Employee Benefits and Sweat Equity) Regulations 2021 are the master framework for share-based benefits at listed companies, covering ESOPs, employee stock purchase schemes, stock appreciation rights, sweat equity and employee benefit trusts. Compliance runs across the life of every scheme.

    In practice this means a shareholder special resolution to adopt or vary a scheme, administration through a compensation committee, a minimum one-year vesting between grant and vesting, the promoter bar under Regulation 2(1)(i) subject to the Regulation 9A and DPIIT carve-outs, and a multi-stage disclosure regime to the stock exchanges and in the annual report. We map each requirement to a deliverable and run it.

    Key Terms for SEBI SBEB Regulations Compliance:

    • SBEB Regulations 2021: the master framework for listed-company share-based benefits.
    • Pre-IPO ratification: a pre-listing scheme must be ratified by shareholders after listing.
    • Regulation 9A: the founder-ESOP carve-out, notified 8 September 2025.
    • Compensation committee: administers the scheme under the Regulations.
    APL-05 SEBI SBEB Regulations Compliance
    Governed by SBEB Regulations 2021

    The Core Deliverables in Detail

    We map each SBEB requirement to a concrete deliverable and run it:

    • Scheme design and shareholder approval: we draft the ESOP, ESPS or SAR scheme to the SBEB Regulations, prepare the special resolution and explanatory statement, set up the compensation committee mandate, and run the shareholder approval with the prescribed disclosures.
    • Pre-IPO scheme ratification: a scheme framed before listing must be ratified by shareholders after listing, and no fresh grants can be made under a pre-IPO scheme until it is ratified; we handle this ratification, a standard IPO due-diligence checkpoint.
    • Regulation 9A founder treatment: where a founder is classified as a promoter in the draft offer document, we apply Regulation 9A so ESOPs or SARs granted at least one year before the DRHP filing can be retained and exercised.
    • Disclosures, filings and annual reporting: we file the in-principle stock-exchange approval before grant, make grant and exercise disclosures on SEBI timelines, prepare the annual board-report ESOP disclosure, and publish scheme documents on the website under LODR Regulation 46.

    Our SBEB Compliance Deliverables

    ServiceWhat We Do
    Scheme design and adoptionDraft the scheme, special resolution and explanatory statement to SBEB.
    Shareholder approvalRun the special resolution and the prescribed disclosures.
    Pre-IPO ratificationRatify the pre-IPO scheme after listing so fresh grants stay valid.
    Regulation 9AApply the founder-ESOP carve-out for promoter-classified employees.
    Disclosures and filingsIn-principle approval, grant and exercise filings, annual board-report disclosure.
    LODR website disclosurePublish scheme documents under Regulation 46 with board-approved redactions.
    Our Process

    How We Run Your SBEB Compliance

    From scheme review to annual reporting, we run the whole SBEB programme as one accountable engagement.

    Step 1

    Review the scheme

    We assess the existing or proposed scheme against the SBEB Regulations and flag gaps.

    Against SBEB Gaps flagged
    Reviewed 01
    Step 2

    Adopt or fix

    We draft or redraft the scheme and run the shareholder special resolution.

    Special resolution SBEB-compliant
    Adopted 02
    Step 3

    Ratify if pre-IPO

    We put the pre-IPO scheme to shareholders for ratification after listing.

    Post-listing Grants valid
    Ratified 03
    Step 4

    File and disclose

    We make the in-principle, grant and exercise filings and the website disclosures.

    In-principle Reg 46 website
    Filed 04
    Step 5

    Report annually

    We prepare the annual board-report ESOP disclosures every year.

    Board report Every year
    Reported 05

    What We Need From You

    • The existing or proposed scheme document and any prior resolutions.
    • Details of the compensation committee and its mandate.
    • The grant register, vesting schedule and any exercises to date.
    • For an IPO-bound company, the DRHP status and any promoter-classified founders.
    • The company's stock-exchange and LODR disclosure history.

    An ESOP is a continuous obligation, not a one-time event

    The SBEB Regulations govern the scheme from design through every grant, exercise and annual report, and the September 2025 amendment added Regulation 9A on founder ESOPs. We own the whole programme so nothing is missed.

    Common Challenges and How We Solve Them

    ChallengeImpactHow Patron Accounting Solves It
    Pre-IPO scheme never ratified post-listingFresh grants invalidRun the shareholder ratification so grants stay valid.
    Founder ESOPs at risk on promoter reclassificationBenefits exposedApply Regulation 9A and the one-year DRHP rule.
    Missed grant, exercise or website disclosuresCompliance gapRun a disclosure calendar tied to every scheme event.
    Scheme not SBEB-compliantAdoption defectRedraft the scheme and resolutions to the Regulations.

    Engagement and Fees

    Fee ComponentAmount
    Patron Accounting Professional FeesStarting from Rs 49,999 (Exl GST and Govt. Charges)
    One-off scheme adoption or pre-IPO ratificationScoped to the project
    Full annual SBEB-compliance retainerPriced to the scheme, number of grants and ongoing support

    All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

    Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

    Get a free SEBI SBEB Regulations Compliance consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

    Time Taken

    StageEstimated Timeline
    Adopt or redraft a scheme and run shareholder approval4 to 8 weeks (driven by the general-meeting notice)
    Pre-IPO ratification or a Regulation 9A assessment1 to 2 weeks
    Disclosures and annual reportingOngoing, on the company's reporting and grant cycles

    Disclosures and annual reporting run as an ongoing programme on the company's reporting and grant cycles, once the scheme is adopted.

    Key Benefits

    Why Outsource SBEB Compliance to Us

    One accountable team

    One accountable team for the whole SBEB programme, not piecemeal advice.

    Grants protected

    Pre-IPO ratification and Regulation 9A handled correctly, protecting grants.

    On-time filings

    Every disclosure and annual filing made on time, on a tracked calendar.

    Clean SBEB record

    A clean record that stands up in the secretarial compliance report and due diligence.

    Trusted by Listed Companies and Boards

    10,000+ Businesses | 4.9 Google Rating | 50,000+ Documents Processed | 15+ Years

    Patron Accounting LLP is a CA and CS firm with 15+ years running SEBI and secretarial compliance for listed companies.

    With offices in Pune, Mumbai, Delhi and Gurugram, Patron Accounting serves businesses across India, both in-person and remotely.

    The SBEB Disclosure Stages We Cover

    StageDisclosure / filing
    Scheme adoptionSpecial resolution with Schedule I disclosures
    Before grantIn-principle approval from the stock exchange
    On grant and exerciseEvent disclosures to the exchanges on SEBI timelines
    AnnuallyBoard-report ESOP disclosures in the annual report
    OngoingScheme documents on the website under LODR Regulation 46

    Related Services

    This page is the SBEB compliance master within our listed-company ESOP work, fanning out to the Regulation 9A founder treatment and the annual disclosure and reporting spokes, all delivered through our ESOP management and compliance services.

    Unlisted or startup ESOPs are handled in ESOP management and compliance services. Listed companies also need secretarial audit, and the deadlines sit in your compliance calendar. See also the full ESOP services hub.

    Regulatory Framework

    SBEB Regulations 2021: the master framework for listed-company ESOPs, ESPS, SARs, sweat equity and employee benefit trusts, requiring a shareholder special resolution, compensation-committee administration, a minimum one-year vesting and the promoter bar under Regulation 2(1)(i).

    Pre-IPO schemes: a scheme framed before listing must be ratified by shareholders after listing, and no fresh grants may be made under it until ratified.

    Regulation 9A: inserted by the SEBI SBEB (Amendment) Regulations 2025, notified 8 September 2025, permitting a promoter-classified founder to retain and exercise benefits granted at least one year before the DRHP filing.

    Disclosure: Schedule I disclosure format, in-principle stock-exchange approval before grant, grant and exercise filings on SEBI timelines, annual board-report disclosure, and scheme-document website disclosure under SEBI LODR Regulation 46, covered in the secretarial compliance report under Regulation 24A.

    Authoritative sources: the Securities and Exchange Board of India (SBEB Regulations 2021, Regulation 9A), the SEBI LODR Regulations and circulars, the Ministry of Corporate Affairs (Companies Act, Section 62, Rule 12), and the Companies Act and Rules.

    What do the SEBI SBEB Regulations require for a listed company?

    The SEBI SBEB Regulations 2021 require a listed company to adopt or vary any share-based scheme by a shareholder special resolution, administer it through a compensation committee, observe a minimum one-year vesting, respect the promoter bar, and make multi-stage disclosures to the stock exchanges and in the annual report. They cover ESOPs, ESPS, SARs, sweat equity and employee benefit trusts. We manage all of this end to end.

    Does a pre-IPO ESOP scheme need ratification after listing?

    Yes. A scheme framed before listing must be ratified by shareholders after the company lists, and no fresh grants can be made under a pre-IPO scheme until it is ratified. This is a standard IPO due-diligence checkpoint. We run the ratification special resolution so existing grants stay valid and the company can continue to make grants under the scheme post-listing.

    SBEB compliance kya manage karte ho aap?

    Hum poora SBEB compliance manage karte hain: scheme drafting aur adoption, shareholder special resolution, pre-IPO ratification, Regulation 9A, aur sabhi disclosures aur annual filings. Listed company ke board aur secretarial team ke liye ek hi accountable team, taaki kuch bhi miss na ho.

    What is Regulation 9A and how does it fit SBEB compliance?

    Regulation 9A, notified on 8 September 2025, lets an employee who is identified as a promoter or promoter-group member in the draft offer document retain and exercise ESOPs, SARs or similar benefits granted at least one year before the DRHP filing. As part of SBEB compliance, we assess founder grants against Regulation 9A so IPO-bound founders do not lose their benefits on reclassification. Our Regulation 9A spoke covers this in depth.

    What ESOP disclosures must a listed company make?

    A listed company discloses the scheme with Schedule I information at adoption, obtains in-principle stock-exchange approval before grant, makes grant and exercise disclosures to the exchanges on SEBI timelines, prepares annual board-report ESOP disclosures, and publishes the scheme documents on its website under LODR Regulation 46. The secretarial compliance report under Regulation 24A confirms this. We prepare and file all of them.

    Do the SBEB Regulations cover SARs and sweat equity?

    Yes. The SEBI SBEB Regulations 2021 are a single framework covering ESOPs, employee stock purchase schemes, stock appreciation rights, sweat equity and employee benefit trusts for listed companies. Equity-settled SARs are treated like ESOPs for regulatory purposes. So a listed company structuring any of these instruments looks to the SBEB Regulations, and our managed compliance covers each of them.

    Compensation committee zaroori hai kya SBEB ke liye?

    Haan. SBEB Regulations ke tahat listed company mein share-based scheme ko compensation committee administer karti hai, jo grants, eligibility aur compliance oversee karti hai. Hum committee ka mandate set karne aur uske through scheme chalane mein madad karte hain.

    Is SBEB compliance a one-time or ongoing engagement?

    It is ongoing. While scheme adoption is a one-time project, the SBEB Regulations impose continuing obligations: disclosures on every grant and exercise, annual board-report disclosures, website disclosure upkeep, and compliance through the secretarial compliance report. Many listed companies engage us on an annual retainer so the whole programme runs without gaps, alongside one-off projects like adoption or ratification.

    Quick Answers

    • Framework? SBEB Regulations 2021.
    • Approval? Shareholder special resolution.
    • Pre-IPO scheme? Must be ratified post-listing.
    • Reg 9A? Founder ESOPs at IPO, 8 Sep 2025.
    • Fee? From Rs 49,999 plus GST.

    Why Timing Matters

    A missed pre-IPO ratification can invalidate fresh grants, and a late disclosure shows up in the secretarial compliance report and IPO due diligence. SBEB compliance is unforgiving of gaps. Put a managed programme in place so every resolution, disclosure and annual filing happens on time, not in a scramble before an audit or a listing.

    Run Your SBEB Compliance with Confidence

    SBEB compliance is a continuous, multi-stage obligation that spans scheme design, shareholder approval, pre-IPO ratification, the new Regulation 9A treatment, and a calendar of disclosures and annual filings.

    Patron Accounting LLP, a CA and CS firm with 15+ years of listed-company compliance experience, runs the whole programme as a single accountable engagement, with focused spokes for Regulation 9A and annual disclosure.

    Book a Free Consultation - No Obligation.

    Listed-Company SBEB Compliance Across India

    In-person and remote SEBI SBEB scheme adoption, pre-IPO ratification, Regulation 9A and disclosure compliance for listed companies.

    We run SBEB compliance for listed companies nationwide, with offices in Pune, Mumbai, Delhi and Gurugram and remote support across India. The scheme adoption, ratification, Regulation 9A and disclosures are handled the same way wherever you are based.

    Related Services
    End-to-end support for listed-company ESOP compliance

    Content Created: 2 June 2026  |  Last Updated:  |  Next Review: 2 September 2026  |  Reviewed By: CA & CS Team, Patron Accounting LLP

    This page is reviewed every three months for any SEBI SBEB amendments or circulars, LODR disclosure changes, new SEBI consultation papers on share-based benefits, Regulation 9A clarifications, and ICDR amendments affecting ESOP eligibility (Tier 1 freshness).