Question
Consider the following statements regarding regulation
of “Sweat Equity” in the Indian economy: 1. Sweat equity refers to shares issued by a company to its employees for non-cash consideration. 2. There is no maximum limit of sweat equity shares that can be issued by a listed company 3. Companies are only allowed to provide Sweat equity benefits to employees, who are exclusively working for a company and not to any of its group companies including a subsidiary or an associate. Which of the statements given above is /are correct?Solution
● Statement 1 is correct: Sweat equity is a nonmonetary contribution that the individuals or founders of a company make towards the company. Cash-strapped startups and business owners typically use sweat equity to fund their companies. ● Statement 2 is incorrect: The maximum yearly limit of sweat equity shares that can be issued by a listed company has been prescribed at 15% of the existing paid-up equity share capital or shares of the value of Rs 5 crore, whichever is higher. The issuance shall not exceed 25% of the paid-up capital at any time. In case of companies listed on the Innovators Growth Platform (IGP), the yearly limit will be 15% and overall limit will be 50% of the paid-up capital at any time. It will be applicable for 10 years from the date of the company’s incorporation. ● Statement 3 is incorrect: Companies will now be allowed to provide share-based employee benefits to employees, who are exclusively working for such a company or any of its group companies including a subsidiary or an associate.
Find out the most effective word from the given options to fill in the blanks of the following question.
1. Although the ______ basis for the f...
I would say mine was a very secure childhood, _________ materially and emotionally.
Once transportation across long distances made other vegetables easily available, we ______ what was available in our backyards.
The first time I went to art class, the teacher, a man called Barington, told us that everything we could see was made of atoms. Everything. And that if...
Her eloquent speech at the conference left a profound _________ on the audience, inspiring them to take action.
Directions: In each of the following sentences, a blank is given. Choose the most appropriate option from the provided choices to fill in the blank an...
In the following question, a sentence is given having two blanks in it followed by 5 options. Each option contains a pair of words. Choose the option w...
The housewife _______ the cakes were burning, and ran to switch off the oven.
In the Shanghai Masters final, Djokovic ______________by Jannik Sinner in straight sets, a match that highlighted the _____________talent in men's tennis.
Each question below has two blanks, which is indicating that something has been omitted. Choose the most suitable option indicating the words that can ...
Relevant for Exams:
