Bhola Ltd a listed company would like to introduce a share-based employee welfare or employee benefit scheme as per SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 for its employees. The company w

As per Regulation 3(10) of the SEBI (Share based Employee Benefits and Sweat Equity) Regulations, 2021, Secondary acquisition in a financial year by the trust shall not exceed 2% of the paid-up equity capital of the company as at the end of the previous financial year. Hence, Ganga Welfare Trust can acquire 2% stake in Bhola Ltd. during one financial year in order to facilitate the implementation of the ESOS scheme. Regulation 6(1) of the SEBI (Share based Employee Benefits and Sweat Equity) Regulations, 2021 provides that no scheme shall be offered to employees of a company unless the shareholders of the company approve it by passing a special resolution in the general meeting.