State with reasons whether the following persons can be appointed as 'Trustee' of Joe Pharma Ltd., a listed company, which has proposed to implement Share Based Employee Benefit Schemes : (b) Karnatak Bank Securities Ltd
CS Executive · Securities Laws and Capital Markets · PYQS · December 2023
State with reasons whether the following persons can be appointed as 'Trustee' of Joe Pharma Ltd., a listed company, which has proposed to implement Share Based Employee Benefit Schemes : (b) Karnatak Bank Securities Ltd. has been one of the leading promoters of the company.
Answer & Explanation:
No, Karnatak Bank Securities Ltd. cannot be appointed as a Trustee for Joe Pharma Ltd. As per Regulation 3(4)(b) of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, any person shall not be appointed as a trustee if he is a director, key managerial personnel, or promoter of the company or its group company (including its holding, subsidiary, or associate company) or any relative of such director, key managerial personnel, or promoter. Since Karnatak Bank Securities Ltd. has been one of the leading promoters of Joe Pharma Ltd., it is disqualified from being appointed as a Trustee.
Topics: SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021
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