Answer with reference to SEBI Regulations: Whether the company is free to fix the price of sweat equity shares?
CS Executive · Securities Laws and Capital Markets · PYQS · December 2022
Answer with reference to SEBI Regulations: Whether the company is free to fix the price of sweat equity shares?
Answer & Explanation:
No, the company is not free to fix the price of sweat equity shares. As per Regulation 33 of 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 Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Topics: Share Based Employee Benefits
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