Explain the Stock Appreciation Rights Scheme (SARS).

According to SEBI (Share Based Employee Benefits) ("SBEB") Regulations, 2014, "Stock Appreciation Right Scheme" means a scheme under which a company grants Share Appreciation Right (SAR) to employees. SAR Scheme under SEBI (SBEB) Regulations, 2014 (i) Administration and Implementation The SAR scheme shall contain the details of the manner in which the scheme will be implemented and operated. The company shall have the freedom to implement cash settled or equity settled SAR scheme. However, in case of equity settled SAR scheme, if the settlement results in fractional shares, then the consideration for fractional shares should be settled in cash. SAR shall not be offered unless the disclosures, as specified by SEBI in this regard, are made by the company to the prospective SAR grantees. (ii) Vesting There shall be a minimum vesting period of one year in case of SAR scheme. However, in a case where SAR is granted by a company under a SAR scheme in lieu of SAR held by the same person under a SAR scheme in another company which has merged or amalgamated with the first mentioned company, the period during which the SAR granted by the transferor company were held by the employee shall be adjusted against the minimum vesting period. (iii) Rights of the SAR Holder The employee shall not have right to receive dividend or to vote or in any manner enjoy the benefits of a shareholder in respect of SAR granted to him.