Regulation 31 - Maximum quantum of sweat equity shares - Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021

31. Maximum quantum of sweat equity shares A company shall not issue sweat equity shares for more than fifteen percent of the existing paid up equity share capital in a year: Provided that 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: Provided further that 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.