Answer with reference to SEBI Regulations: Himanshu, a non-executive director, approached the company for allotment of sweat equity shares. Whether he is eligible?
CS Executive · Securities Laws and Capital Markets · PYQS · December 2022
Answer with reference to SEBI Regulations: Himanshu, a non-executive director, approached the company for allotment of sweat equity shares. Whether he is eligible?
Answer & Explanation:
As per Regulation 29 of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, a 'director of the company whether a whole-time director or not' is considered an 'employee' for the purpose of sweat equity shares. Therefore, Himanshu, being a non-executive director, is eligible for allotment of sweat equity shares.
Topics: Share Based Employee Benefits
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