THE GAZETTE OF INDIA

b9bdee0c07f4a17f73d2ed51813199e776e1e26e · 1992 · State unknown

Download PDF Parent Act Back to Subordinates

Parent: THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 (7c4c1f5343adab106c3a94cafc08a5ecf5957ae7)

Text

THE GAZETTE OF INDIA EXTRAORDINARY PART – – – II – – – SECTION 3 – – – SUB SECTION (II) PUBLISHED BY AUTHORITY SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION the 24 September, 2002 SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF SWEAT EQUITY) REGULATONS, 2002 S.O. No.1031 (E) In exercise of the powers conferred by Section 30 of the Securities and Exchange Board of India, 1992 read with Clause (d) of sub sections (1) of Section 79A as inserted by the Companies (Amendment) Act, 1998 (1 of 1999), the Board, hereby makes the following regulations, namely:- CHAPTER – – – I PRELIMINARY Short title and commencement . 1 (a) These regulations shall be called the Securities and Exchange Board of India (Issue of Sweat Equity) Regulations, 2002. (b) These regulations shall come into force on the date of their publication in the Official Gazette. Definitions . (1) In these regulations, unless the context otherwise requires: - (a) ' Act' means the Securities and Exchange Board of India Act, 1992; (b) ' associate' includes a person, (i) who directly or indirectly by himself or in combination with relatives, exercise control over the company; or, (ii) whose employee, officer or director is also a director, officer or employee of the company; (c) ' Board' means the Board as defined in clause (a) of sub section (1) of section 2 of the Act; (d) ' control' shall include the right to appoint majority of the directors or to control the management or policy decisions exercisable by a person or persons acting individually or in concert, directly or indirectly, including by virtue of their shareholding or management rights or shareholders or voting agreements or in any other manner; (e) ' company' means a company as defined in Companies Act, 1956; (f) ' director' means, a director as defi

Rule TOC

1 · (a) These regulations shall be called the Securities and Exchange Board of India (Issue of Sweat Equity) Regulations, 2002.

4 · . A company whose equity shares are listed on a recognized stock exchange may issue sweat equity shares in accordance with Section 79A of Companies Act, 1956 and these Regulations to its –

8 · (1) The valuation of the intellectual property rights or of the know how provided or other value addition mentioned in Explanation II of sub section (1) of Section 79A of the Companies Act, 1956 shall be carried out by a merchant banker.

11 · The amount of Sweat Equity shares issued shall be treated as part of managerial remuneration for the purpose of sections 198, 309, 310, 311 and 387 of the Companies Act, 1956, if the following conditions are fulfilled:

14 · Any acquisition of Sweat Equity Shares shall be subject to the provision of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.

17 · (1) The Board may, suo-motu or upon information received by it, cause an inspection to be made of the books of account or other books and papers of any company or an investigation to be made in respect of the conduct and affairs of any person associated with the process of sweat equity, by appointing an officer of the Board 1 [not below the rank of Assistant General Manager for the purpose of conducting inspection and not below the rank of Division Chief for the purpose of conducting an investigation]:

1 · Inserted by the SEBI (Issue of Sweat Equity) (Amendment) Regulations, 2003, w.e.f. 27-8-2003.s

20 · The Board may in the interests of the securities market and without prejudice to its rights to initiate action, including criminal prosecution under Section 24 of the Act or Section 621 of Companies Act give such directions as it deems fit including:-