Sweat Equity Shares are allotted to employees who have exceptionally contributed to the business with their hard work and contribution in the form of Intellectual Property Rights (IPR), know-how, value addition, skill and technical expertise. The shares issued to such employees (either at a discounted price or against the know-how contributed) are in legal parlance termed as “Sweat Equity”.

Sweat Equity comes as a productive tool for organisations in terms of cost effectiveness, taxation advantage, as an effective incentive measure, retention strategy of key employees, wider coverage of employees, less complications, minimal regulatory compliances, etc. The concept of sweat equity is even prevalent across the borders and hence comes with a dual advantage to incentivize employees in India as well as overseas, which will act as a catalyst towards growth of the business in all directions.