{"id":7449,"date":"2021-08-10T06:08:45","date_gmt":"2021-08-10T06:08:45","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=7449"},"modified":"2021-08-10T06:08:48","modified_gmt":"2021-08-10T06:08:48","slug":"relaxation-and-benefits-by-sebi-to-the-deceased-employee-family","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/relaxation-and-benefits-by-sebi-to-the-deceased-employee-family\/","title":{"rendered":"Relaxation and Benefits by SEBI to the Families of the Deceased Employee"},"content":{"rendered":"\n<p class=\"has-drop-cap\">As we all know that On March 2020 the World Health Organisation had declared the Covid-19 Pandemic as a worldwide Coronavirus outbreak.\u00a0 We have seen thousands of people get infected and many of them even died because of this pandemic. Amidst this significant situation now, entities are facing difficulty in managing and operating their business efficiently. It has also been noticed that in this Covid-19, many of the company&#8217;s employees died, and the employee&#8217;s whole family went into the depression because they were the only source of income in the family. So by seeing this, the Government of India has come up with a definite type of scheme to support such families financially. In this write-up, we are going to understand the various relaxation and benefits by SEBI to the families of the deceased employee.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3aa3663e1f4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3aa3663e1f4\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/relaxation-and-benefits-by-sebi-to-the-deceased-employee-family\/#What_are_the_Powers_of_SEBI_in_India\" title=\"What are the\nPowers of SEBI in India?\">What are the\nPowers of SEBI in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/relaxation-and-benefits-by-sebi-to-the-deceased-employee-family\/#Some_Relaxation_and_Benefits_by_SEBI_to_the_Families\" title=\"Some\nRelaxation and Benefits by SEBI to the Families\">Some\nRelaxation and Benefits by SEBI to the Families<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/relaxation-and-benefits-by-sebi-to-the-deceased-employee-family\/#Employee_Deposit_Linked_Insurance_Scheme_%E2%80%93_Relaxation_and_Benefits_by_SEBI\" title=\"Employee\nDeposit Linked Insurance Scheme &#8211; Relaxation and Benefits by SEBI\">Employee\nDeposit Linked Insurance Scheme &#8211; Relaxation and Benefits by SEBI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/relaxation-and-benefits-by-sebi-to-the-deceased-employee-family\/#What_are_the_Various_Challenges_Faced_by_the_Companies\" title=\"What are the\nVarious Challenges Faced by the Companies?\">What are the\nVarious Challenges Faced by the Companies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/relaxation-and-benefits-by-sebi-to-the-deceased-employee-family\/#Relaxation_and_Benefits_by_SEBI_to_Companies_in_India\" title=\"Relaxation and\nBenefits by SEBI to Companies in India\">Relaxation and\nBenefits by SEBI to Companies in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/relaxation-and-benefits-by-sebi-to-the-deceased-employee-family\/#Conclusion_%E2%80%93_Relaxation_and_Benefits_by_SEBI\" title=\"Conclusion &#8211;\nRelaxation and Benefits by SEBI\">Conclusion &#8211;\nRelaxation and Benefits by SEBI<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Powers_of_SEBI_in_India\"><\/span>What are the\nPowers of SEBI in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before\nwe discuss the relaxation and benefits by SEBI to the families of the deceased\nemployee, it&#8217;s essential to know the powers of SEBI (Security and Exchange\nBoard of India), and you can check the same below:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/08\/image001-7.png\" alt=\"Powers of SEBI in India\" class=\"wp-image-7455\" width=\"499\" height=\"500\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/08\/image001-7.png 998w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/08\/image001-7-150x150.png 150w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/08\/image001-7-300x300.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/08\/image001-7-768x769.png 768w\" sizes=\"(max-width: 499px) 100vw, 499px\" \/><\/figure><\/div>\n\n\n\n<ol><li><strong><em>Quasi-Executive Power<\/em><\/strong>:\nSecurity and Exchange Board of India (SEBI) has the power to execute the\njudgements &amp; regulations made and can take any legitimate action against\nthe infringers. It also has the power to inspect the books of account &amp; any\nother documents.<\/li><li><strong><em>Quasi-Judicial Power<\/em><\/strong>:\nIn case of any unethical and fraudulent practices related to the securities\nmarkets, the SEBI has the power to deliver judgments, and it aids in ensuring\ntransparency &amp; fairness. <\/li><li><strong><em>Quasi-Legislative Power<\/em><\/strong>:\nSEBI has the power to frame rules &amp; regulations to safeguard the investors\u2019\ninterest. Rules like listing obligations, inside trading, and disclosure\nnecessities are formulated to keep the malpractices at bay.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Relaxation_and_Benefits_by_SEBI_to_the_Families\"><\/span>Some\nRelaxation and Benefits by SEBI to the Families<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In an outlook of the Covid-19 situation in India, SEBI decided to provide some relief to the families of the dead employee who worked in the listed companies. SEBI said that the provisions of <strong><em>Share-Based Employee Benefit Regulation (SBEBR), 2014<\/em><\/strong><sup><a href=\"https:\/\/www.sebi.gov.in\/legal\/regulations\/apr-2017\/securities-and-exchange-board-of-india-share-based-employee-benefits-regulations-2014-last-amended-on-april-17-2020-_34689.html\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup>, concerning a minimum period of 1 year, would not be going to be applied in the case of demise. <\/p>\n\n\n\n<p>Such\ndemise is not necessary to be Covid-19 death can be any reason for a company\u2019s\nemployee. All the employee stock options, SAR (Stock Appreciation Rights) or\nany benefits permitted to the employee will be given to the lawful nominee or\nheir on the death date of the employee. This regulation of SEBI will only be\navailable to all employees who have died on or after <strong><em>1<sup>st<\/sup> April, 2020<\/em><\/strong>.<\/p>\n\n\n\n<p>As\nper the SEBI <strong><em>Regulations, Regulation 18(1) and 24(1) <\/em><\/strong>provide that there will\nbe a minimum vesting time of 1 year in the case of <strong><em>SAR (Stock Appreciation Rights)\nand employee stock options. <\/em><\/strong>A SAR refers to the right to be paid\ncompensation, which is equal to an increase in the company&#8217;s expected stock\nprice over a base or the appreciation value of the equity shares presently\nbeing traded on the public market.<\/p>\n\n\n\n<p>Moreover,\n<strong><em>Regulation\n9(4) of SEBI <\/em><\/strong>says that in case of demise of any employee, all the\noptions, Stock Appreciation Rights and is there are any other benefits\npermitted to them under a scheme, then it will be transferred to the lawful\nnominees ort heirs of the dead employee.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Employee_Deposit_Linked_Insurance_Scheme_%E2%80%93_Relaxation_and_Benefits_by_SEBI\"><\/span>Employee\nDeposit Linked Insurance Scheme &#8211; Relaxation and Benefits by SEBI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If\nanyone who is an active employee of the company died due to the Covid-19, then\nhis or her legal nominee is liable for money up to <strong><em>Rs. 7 lakh under the EDLI Scheme<\/em><\/strong>\nfor salaried employees from the private sector. Employer&#8217;s nominees get the lump\nsum payment in the case of any unlucky event of the proposed person\u2019s death at\nthe time of the service.<\/p>\n\n\n\n<p>To\naid private-sector employees impacted by the Covid-19 pandemic, EPFO (Employees\nProvident Fund Organisation), on 28<sup>th<\/sup> April, 2021, issued an\nannoucement for raising the benefit in this EDLI Scheme from Rs. <strong><em>6\nlakh to Rs. 7 lakh<\/em><\/strong> for the member of its EDLI Scheme. In 2015, the\nbenefit was raised from <strong><em>Rs. 3.6 lakh to 6 lakh<\/em><\/strong>.<\/p>\n\n\n\n<p>The notification announced in April stated that the provision which was introduced would have effect from 15<sup>th<\/sup> Feb 2020, and the benefit will not be less than Rs. 2.50 lakh. If any company or organisation has more than 20 employees, then they have to <strong><a href=\"https:\/\/swaritadvisors.com\/epf-registration\" class=\"text-primary\">register for EPF<\/a><\/strong>. Hence, any employee who has an EFP account becomes liable for the EDLI Scheme.<\/p>\n\n\n\n<p>To\nclaim the insurance under this scheme, then the only condition is that the EPF\naccount holder should have been demised when he or she was still employed; that\nis, before the retirement, the dead person should have been the active\ncontributor to the EPF Scheme of their death.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Various_Challenges_Faced_by_the_Companies\"><\/span>What are the\nVarious Challenges Faced by the Companies?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>Most of the sectors are badly\nhit by this pandemic in India, such as power generation, textile,\nmanufacturing, mining, etc. Human Resources in the industries are unavailable,\n&amp; transportation is disrupted, but they have to pay wages to the workers\n&amp; employees from their reserve;<\/li><li>Companies are adopting Work\nFrom Home (WFH) culture and shifting to the digital mode for conducting\nconferences &amp; other things leading to exposure to cyber threats for\nentities, such as leaking of confidential information. When many of the\ncompany\u2019s employees are doing WFH, they might be using unsafeguarded personal\nnetworks, which shows the organisation to different levels of cyber risks and\nfrauds.<\/li><li>Another challenge that most of\nthe companies face during this pandemic is conducting the meeting such as\nAnnual General Meeting, Board Meeting, Extraordinary General Meetings, necessary\nfor a decision making instrument.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relaxation_and_Benefits_by_SEBI_to_Companies_in_India\"><\/span>Relaxation and\nBenefits by SEBI to Companies in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare some relaxations and benefits by SEBI to companies in India:<\/p>\n\n\n\n<ul><li>There are some relaxations and benefits by SEBI to companies in India, like the deadline extension given to the companies or organisations for filing financial outcomes for the quarter &amp; the financial year ended 31<sup>st<\/sup> March to 30<sup>th<\/sup> June. SEBI (Securities and Exchange Board of India) permitted the listed companies to use <strong><a href=\"https:\/\/swaritadvisors.com\/learning\/how-to-obtain-digital-signature-certificate-in-india\/\" class=\"text-primary\">DSCs (Digital Signature Certificates)<\/a><\/strong> made to stock exchanges for filing or submissions made to stock exchanges under their listing obligations &amp; disclosure necessities regulations, 2015 for all the filing until 31<sup>st<\/sup> December, 2021.<\/li><li>To copy with the liquidity calamity created by the Covid-19, SEBI has eased the capital rising for all the listed companies. Markers regulators have changed the takeover code to permit the promoters to get up to 10% in a Financial Year (F.Y) without triggering a penned offer, but this can only be done by issuing preferential issues of equity shares.<\/li><\/ul>\n\n\n\n<p>In\nsimple terms, we can say that promoters will have to impart fresh capital into\ntheir company &amp; not just get shares from the secondary market. Now, the\nSEBI has incentivised the promoter to do a preferential allotment of vast size\nthen take advantage of increasing the creeping acquisition limit. SEBI has\nchosen this to give encouragement (incentive) to the coming at higher prices\n&amp; companies to get more significant amounts from promoters should arise.<\/p>\n\n\n\n<ul><li>On 25<sup>th<\/sup> March of\nthis year, SEBI consented to certain amendments to the delisting regulation by\nfixing timelines, permitting acquirers to provide indicative prices, &amp;\ndetailing the role of a merchant banker in the delisting process.<\/li><\/ul>\n\n\n\n<p>Delisting of the listed company or take privates as delisting are known internationally has met with limited success in India primarily due to strict pricing rules under the <strong><em>Delisting Regulations<\/em><\/strong>. In delisting, the discovery of price is left with the public shareholders. Reverse book building permits the public shareholders to provide their share with a cost of their choice above a definite level of floor price. The price at which the acquirer can cross 90% of the company&#8217;s share capital becomes the final delisting price. It&#8217;s for the acquirer to accept or reject this discovered price.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion_%E2%80%93_Relaxation_and_Benefits_by_SEBI\"><\/span>Conclusion &#8211;\nRelaxation and Benefits by SEBI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In this dangerous pandemic, many people lost their precious life and their families suffer from severe financial loss. So to overcome some tension in the families, there are some relaxation and benefits by SEBI to the families, as we discussed above, which provide some relief to the families. These financial cover might seem to be small, but they can aid those who require money urgently. Government must increase the insurance amount cover a little more so that their family members who have urgent requirements of money. SEBI assisted to some extent in such pandemics, especially to the families with urgent needs of money.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/sebi-norms-for-independent-directors-appointment-and-removal\/\">SEBI Changes Norms for Independent Directors Appointment and Removal<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As we all know that On March 2020 the World Health Organisation had declared the Covid-19 Pandemic as a worldwide Coronavirus outbreak.\u00a0 We have seen thousands of people get infected and many of them even died because of this pandemic. Amidst this significant situation now, entities are facing difficulty in managing and operating their business [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":7454,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[64],"tags":[800],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/7449"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=7449"}],"version-history":[{"count":7,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/7449\/revisions"}],"predecessor-version":[{"id":7462,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/7449\/revisions\/7462"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/7454"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=7449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=7449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=7449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}