Managerial remuneration: sweat equity treated as remuneration when issued to director/manager for non cash, non balance sheet consideration.

Regulation 37 treats sweat equity shares as part of managerial remuneration under sections 196, 197 and other applicable provisions of the Companies Act, 2013 when (i) the shares are issued to a director or manager and (ii) they are issued for non cash consideration that cannot be recognised as an asset on the company's balance sheet under relevant accounting standards.

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