Sebi notifies relaxed sweat equity rules for new-age technology firms

Markets regulator Sebi has given relaxations on the quantum of sweat equity that can be issued by new-age technology companies listed on the Innovators Growth Platform.

The development came at a time when many startups are attracting significant investments, including from overseas.

In the case of IGP-listed companies, the yearly limit for sweat equity shares will be 15 per cent, while the overall limit will be 50 per cent of the paid-up capital at any time, Sebi said in a notification dated August 13.

This enhanced overall limit will be applicable for 10 years from the date of the company’s incorporation.