‘restricted equity instrument’ in relation to a taxpayer means an equity instrument –

 

(a)     which is subject to any restriction (other than a restriction imposed by legislation) that prevents the taxpayer from freely disposing of that equity instrument at market value;

 

(b)     which is subject to any restriction that could result in the taxpayer-

 

 (i)      forfeiting ownership or the right to acquire ownership of that equity instrument otherwise than at market value; or

 

(ii)     being penalised financially in any other manner for not complying with the terms of the agreement for the acquisition of that equity instrument;

 

(c)     if any person has retained the right to impose a restriction contemplated in paragraph (a) or (b) on the disposal of that equity instrument;

 

(d)     which is an option contemplated in paragraph (a) of the definition of ‘equity instrument’ and where the equity instrument which can be acquired in terms of that option will be a restricted equity instrument;

 

(e)     which is a financial instrument contemplated in paragraph (b) of the definition of ‘equity instrument’ and where the equity instrument to which that financial instrument can be converted will be a restricted equity instrument;

 

(f)      if the employer, associated institution in relation to the employer or other person by arrangement with the employer has at the time of acquisition by the taxpayer of the equity instrument undertaken to –

 

(i)      cancel the transaction under which that taxpayer acquired the equity instrument; or

 

(ii)     repurchase that equity instrument from that taxpayer at a price exceeding its market value on the date of repurchase,

 

if there is a decline in the value of the equity instrument after that acquisition; or

 

(g)     which is not deliverable to the taxpayer until the happening of an event, whether fixed or contingent; and