Snapshot on Sweat Equity Shares
Sweat Equity Shares are shares issued by a company to its employees or directors for providing their know-how, or creation of intellectual property rights or key value additions to the company.
It is issued either at a discount or for consideration other than cash. Listed Company can issue sweat equity shares after complying with SEBI regulations and applicable provisions of Companies Act. Unlisted Company can issue sweat equity shares only after authorising by a special resolution passed by the company in general meeting.