RMM Ltd is a listed company engaged in automobile sector, manufacturing cars in India. Due to the growing demand of the cars in the market, the requirement of manufacturing more cars becomes essential. The competitors ar

Issue of sweat equity shares to employees under the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 A company whose equity shares are listed on a recognised stock exchange may issue sweat equity shares in accordance with section 54 of the Companies Act, 2013 and SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 to its employees for their providing know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called. The term 'employee' means, (i) an employee of the company working in India or abroad; or (ii) a director of the company whether a whole time director or not. Maximum quantum of sweat equity shares under the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 A company shall not issue sweat equity shares for more than fifteen percent of the existing paid-up equity share capital in a year. However, the issuance of sweat equity shares in the company shall not exceed twenty five percent of the paid-up equity share capital of the company at any time. Further, a company listed on Innovators Growth Platform shall be permitted to issue not more than fifteen percent of the paid-up equity share capital in a financial year subject to overall limit not exceeding fifty percent of the paid-up equity share capital of the company, up to ten years from the date of its incorporation or registration. Pricing of sweat equity shares under the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 The price of sweat equity shares shall be determined in accordance with the pricing requirements stipulated for a preferential issue to a person other than a qualified institutional buyer under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.