Sweat equity shares require a special resolution and specified terms, with issuance subject to applicable securities regulations. Section 79A allows a company to issue sweat equity shares of an already issued class if authorised by a special resolution specifying number, market price, consideration and eligible classes of directors or employees; at least one year must have elapsed since the company could commence business; listed companies must follow SEBI regulations and unlisted companies follow prescribed guidelines; sweat equity shares are equity shares issued to directors or employees at a discount or for non-cash consideration for know-how, IP rights or value additions, and all equity share provisions apply.