Sunday, 3 May 2015

Stock Appreciation Rights Scheme (SARS)

Stock Appreciation Rights Scheme is a new scheme permitted by SEBI (securities exchange board of india) under which a company grants SARS to employees.

It shall contain the details of the manner in which the scheme is to be implemented.
A company shall have freedom to implement cash settled or equity settled SAR scheme.
if there are fractional shares then consideration for fractional shares must be settled in cash.

BOARD of directors must make necessary disclosures in regard of the same, and must be made by the company to the prospective SAR grantees.

the minimum vesting period will be one year in case of a company issuing a SAR scheme.if the SAR scheme has been granted in lieu of another company or of a company going to be amalgamated and the schemes are need to be adjusted within the minimum vesting period.


Post a Comment