19 January 2011
No a company cannot issue sweat euity Shares to its Promters...As laid under provision of SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.
21 January 2011
"Employee Stock Option Scheme and Employee Stock Purchase Scheme" comes under SEBI guidelines and Sweat Equity comes under sec 79A of Companies Act..u rightly said, In other way you can assume both ESOS,ESOP & Sweat Equity are same bcoz SEBI in order to control illegal dillution of public capital, comes out with a tool called ESOP- ESOS to control distribution of funds in the name of "Sweat Equity Shares".
CAclubindia
