Regulation 4 - Eligibility. - Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021

4. Eligibility. An employee shall be eligible to participate in the schemes of the company as determined by the compensation committee. Explanation ,-Where such employee is a director nominated by an institution as its representative on the Board of Directors of the company (i) the contract or agreement entered into between the institution nominating its employee as the director of a company and the director so appointed shall, inter alia, specify the following:- a. whether the grants by the company under its scheme(s) can be accepted by the said employee in his capacity as director of the company; b. that grant if made to the director, shall not be renounced in favour of the nominating institution; and c. the conditions subject to which fees, commissions, other incentives, etc. can be accepted by the director from the company. (ii) the institution nominating its employee as a director of the company shall file a copy of the contract or agreement with the said company, which shall, in turn file the copy with all the recognised stock exchanges on which its shares are listed. (iii) the director so appointed shall furnish a copy of the contract or agreement at the first board meeting of the company attended by him after his nomination.