Sweat equity shares: issuance to employees permitted for know how, IP or value additions under SEBI regulations.

Issue of sweat equity shares concerns the power of a listed company to reward employees who provide know how, make available rights in the nature of intellectual property, or contribute other value additions; such issuances must be effected in accordance with the Companies Act and SEBI regulations, which prescribe eligibility, purpose and statutory compliance conditions for allotment to employees.

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