about 9 years ago
As per (Share Capital and Debentures) Rules, 2014 there are certain restrictions on the issuance of sweat equity shares as follows:- A company other than a listed company, which is not required to comply with the Securities and Exchange Board of India Regulations (SEBI) on sweat equity, shall not issue sweat equity shares to its directors or employees at a discount or for consideration other than cash, for their providing knowhow or making available rights in the nature of intellectual property rights or value additions, by whatever name called, unless the issue is authorized by a special resolution passed by the company in general meeting.