Regulation 18 - Vesting period. - Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021

18. Vesting period. (1) There shall be a minimum vesting period of one year in case of ESOS: Provided that in case where options are granted by a company under an ESOS in lieu of options held by an employee under an ESOS in another company which has merged, demerged, arranged or amalgamated with the first mentioned company, the period during which the options granted by the transferor company were held by such employee shall be adjusted against the minimum vesting period required under this sub-regulation: Provided further that in the event of death or permanent incapacity of an employee, the minimum vesting period of one year shall not be applicable and in such instances, the options shall vest in terms of sub-regulation (4) of regulation 9 of these regulations, on the date of the death or permanent incapacity. Explanation,- The company implementing an ESOS shall frame an appropriate policy with respect to the death or permanent incapacity of an employee, subject to compliance with applicable laws. (2) The company may specify the lock-in period for the shares issued pursuant to exercise of an option.