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- Checklist – Sale of Shares by Trust & Insider Compliance
- Shweta Verma
September 15, 2026
Checklist – Sale of Shares by Trust & Insider Compliance
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Checklist – Sale of Shares by Trust & Insider Compliance ((SECURITIES AND EXCHANGE BOARD OF INDIA (SHARE BASED EMPLOYEE BENEFITS AND SWEAT EQUITY) REGULATIONS, 2021
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Sr. No. |
Compliance Requirement |
Checklist / Action Point |
Status |
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A. Restriction on Sale of Shares |
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1. |
Restriction on secondary market sale |
Ensure that the trust does not sell shares in the secondary market except in the circumstances specifically permitted under the regulations. |
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2. |
Funding exercise price and related expenses |
Verify whether sale is undertaken to enable employees to fund the exercise price, tax obligations and other related expenses arising from exercise of ESOS options. |
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3. |
Sale pursuant to SAR |
Where applicable, ensure sale is made upon vesting or exercise of SAR under the scheme covered by Part C of Chapter III. |
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4. |
Emergency sale – Part D / Part E schemes |
In case of an emergency sale for implementing schemes under Part D or Part E of Chapter III, ensure the sale is permitted under the scheme. |
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5. |
Recording reasons for emergency sale |
Ensure the trustee(s) record the reasons in writing for any emergency sale. |
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6. |
Utilisation of sale proceeds |
Ensure money realised from an emergency sale is utilised within the definite time period stipulated under the scheme or trust deed. |
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7. |
Buy-back / open offer / delisting / exit offers |
Verify whether the trust may participate in a buy-back, open offer, delisting offer or any other exit offer made generally by the company to its shareholders, where required. |
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8. |
Repayment of loan |
Where unappropriated inventory of shares is not appropriated within the timeline prescribed under sub-regulation (12), ensure sale is undertaken, where required, for repayment of the loan. |
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9. |
Winding-up of scheme |
In case of winding-up of the scheme(s), ensure sale of shares is undertaken as permitted under the regulations. |
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B. Sale pursuant to SEBI Board Approval |
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10. |
Prior Board approval |
For schemes covered under Part A, Part B or Part C of Chapter III, ensure that any sale based on this specific exemption is undertaken only after obtaining approval from the SEBI Board. |
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11. |
Application for approval |
Submit an application to the SEBI Board setting out the reasons for seeking approval for the proposed sale. |
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12. |
Reasons recorded in writing |
Ensure the reasons for seeking approval are recorded in writing. |
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13. |
Non-refundable fee |
Pay the prescribed non-refundable fee of ₹1,00,000 along with the application. |
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14. |
Mode of payment |
Ensure the ₹1,00,000 fee is paid by direct credit through NEFT/RTGS/IMPS or any other mode permitted by the RBI. |
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15. |
Compliance with approval conditions |
Ensure the sale is carried out in accordance with the approval granted by the SEBI Board and any conditions attached to such approval. |
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C. Insider / Promoter Compliance |
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16. |
Insider compliance |
Ensure the trust makes the disclosures applicable to insiders under the SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended/re-enacted from time to time. |
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17. |
Promoter compliance |
Ensure compliance with the requirements applicable to promoters, wherever applicable, under the SEBI (Prohibition of Insider Trading) Regulations, 2015. |
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18. |
PIT Regulations |
Ensure all applicable requirements relating to disclosures, trading restrictions and other insider-related obligations under the PIT Regulations are complied with. |
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19. |
Amendments / re-enactments |
Monitor and comply with any modification, amendment or re-enactment of the SEBI (Prohibition of Insider Trading) Regulations, 2015. |
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Author Bio
Shweta Verma
CS Trainee View Full Profile


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