CS Executive · Capital Market and Securities Laws · Share Based Employee Benefits and Sweat Equity
Epsilon Retail Pvt Ltd, an unlisted company, intends to issue sweat equity shares. Under Section 54(1)(d) of the Companies Act, 2013, in accordance with what must the issue be made?
An unlisted company must issue sweat equity shares in accordance with such rules as may be prescribed under the Companies Act, 2013. The SEBI regulations govern listed companies, so they are not the governing standard here.
- ASEBI regulations applicable to listed companies
- BSuch rules as may be prescribedCorrect
- CThe articles of association alone
- DDirections of the stock exchange
Explanation
Clause (d) says that where shares are not listed, sweat equity shares are issued in accordance with such rules as may be prescribed. SEBI regulations apply to listed companies.
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