The share capital of Raney Ltd. is ₹30 crore. 'Russel' is appointed as the managing director of the company, the company wants to compensate him by issue of shares for supplying technical know-how without any cost. In th

Rule 8(5) of Companies (Share capital and Debentures) Rules, 2014 says that the sweat equity shares issued to directors or employees shall be locked/non-transferrable for a period of three years from the date of allotment and the fact that the share certificates are under lock-in and the period of expiry of lock-in shall be stamped in bold or mentioned in any other prominent manner on the share certificate. And hence the sweat equity shares allotted to Russel can be sold in the market only after the expiry of the lock-in period of three years from the date of allotment.