Hi Juhee

As per Section 2(6) of the Companies Act, 2013, the term Associate Companies
includes Joint Ventures. Since the employees of Associate Companies are now included in the definition of “Employees” under Regulation 2 of SBEB and SE Regulations, 2021, employees of joint ventures are also eligible to receive benefits under share based employee benefits schemes subject to shareholders’ approval.

Share-based employee benefits schemes are schemes that allow companies to offer their employees the opportunity to acquire shares or other securities in the company as part of their remuneration or incentive package.

There are several types of share-based employee benefits schemes, including:

1. Employee Stock Option Plans (ESOPs): Under this scheme, employees are granted options to purchase shares of the company at a predetermined price, known as the exercise price. The options can be exercised at a later date, usually after a vesting period, and the employee can purchase shares at the exercise price or sell them at the prevailing market price.

2. Restricted Stock Units (RSUs): Under this scheme, the company grants the employees a certain number of shares or units that vest over a period of time. Once the vesting conditions are met, the employee receives the shares or units, which can be sold or held as per their preference.

3. Employee Share Purchase Plans (ESPPs): Under this scheme, employees can purchase shares of the company at a discounted price. The company may contribute to the purchase price or offer loans to employees to purchase shares.

Share-based employee benefits schemes can be used to attract and retain talented employees, align employee interests with those of the company, and incentivize employees to perform well and contribute to the growth of the company. However, such schemes also require careful planning and implementation to ensure compliance with applicable laws and regulations, and to avoid any adverse impact on the company's financial position and performance.

Yes, employees of joint ventures can be eligible to receive benefits under Share Based Employee Benefits schemes, subject to the terms and conditions of the scheme and the agreement between the joint venture partners.

In a joint venture, two or more parties come together to undertake a specific business activity or project. The joint venture may be structured as a separate legal entity, such as a company or a partnership, and the employees of the joint venture may be employed by the joint venture entity or one of the joint venture partners.

If the joint venture entity has a Share Based Employee Benefits scheme, the employees of the joint venture may be eligible to participate in the scheme, subject to the scheme's rules and the terms of their employment.

Alternatively, if the employees of the joint venture are employed by one of the joint venture partners, they may be eligible to participate in the Share Based Employee Benefits scheme of that partner, subject to the partner's rules and the terms of their employment.

It is important to note that the eligibility of employees of joint ventures to participate in Share Based Employee Benefits schemes may depend on various factors, such as the nature of the joint venture, the terms of the joint venture agreement, and the applicable laws and regulations.