Regulation 7 - Pricing of Sweat Equity Shares. - Securities and Exchange Board of India (Issue of Sweat Equity) Regulations, 2002

Pricing of Sweat Equity Shares. 7. (1) The price of sweat equity shares shall not be less than the higher of the following: (a) the average of the weekly high and low of the closing prices of the related equity shares during last six months preceding the relevant date; or (b) the average of the weekly high and low of the closing prices of the related equity shares during the two weeks preceding the relevant date. Explanation: Relevant date for this purpose means the date which is thirty days prior to the date on which the meeting of the General Body of the shareholders is convened, in terms of clause (a) of sub section (1) of section 79A of the Companies Act. (2) If the shares are listed on more than one stock exchange, but quoted only on one stock exchange on given date, then the price on the stock exchange shall be considered. (3) If the share price is quoted on more than one stock exchange, then the stock exchange where there is highest trading volume during that date shall be considered. (4) If the shares are not quoted on the given date, then the share price on the next trading day shall be considered.