Contract workers of listed companies may soon have stock benefits

Sebi plans to tweak the definition of 'employee' by deleting permanent from it; to merge sweat equity rules

Workers hired on contract by listed companies may soon become eligible for stock-related employee benefits, including stock-option plans.

Currently permanent employees, directors, and executives are eligible for such allotments.

However, promoters and independent directors will remain ineligible for employee benefits.

The move will be a shot in the arm for start-ups and technology companies that hire consultants at middle levels.

According to sources, the Securities and Exchange Board of India (Sebi) is planning to tweak the definition of “employee” under stock-related employee-benefit regulations by removing the word “permanent” from them.

Further, the regulator is contemplating the merger of sweat equity regulations with employee-benefit rules. This