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What is Understanding Sweat Equity Shares about?

Sweat equity refers to non-monetary contributions made to a business through physical labor, intellectual effort, or time. Sweat equity shares are shares given to employees for outstanding contributions, technical skills, or adding value to the company. They must be held for 3 years and cannot exceed 15% of existing shares or Rs. 5 crores annually. Sweat equity shares incentivize contributions, conserve capital, and promote long-term commitment, though they also lack immediate pay and come with uncertainty.

Author

jhanvi

Language

EN