Section 8(4) in Companies (Share Capital and Debentures) Rules, 2014
(4)The company shall not issue sweat equity shares for more than fifteen percent of the existing paid up equity share capital in a year or shares of the issue value of rupees five crores, whichever is higher:Provided that the issuance of sweat equity shares in the Company shall not exceed twenty five percent, of the paid up equity capital of the Company at any time.[Provided that in case of a startup company, as defined in notification number [G.S.R. 127(E), dated the 19th February, 2019 issued by the Department for Promotion of Industry and Internal Trade] [Inserted by Notification No. G.S.R. 704 (E), dated 19.7.2016 (w.e.f. 31.3.2014).], Ministry of Commerce and Industry Government of India, Government of India, the conditions mentioned in sub-clause (i) and (ii) shall not apply upto [ten years] [Substituted 'five years' by Notification No. G.S.R. 372(E), dated 5.6.2020 (w.e.f. 31.3.2014).] from the date of its incorporation or registration.] [Substituted by Notification No. G.S.R. 363(E), dated 10.4.2018 (w.e.f. 31.3.2014).]
