Section 40 in The Companies (Indian Accounting Standards) Rules, 2015
40. If the entity pays in cash on settlement rather than issuing equity instruments, that payment shall be applied to settle the liability in full. Any equity component previously recognized shall remain within equity. By electing to receive cash on settlement, the counter-party forfeited the right to receive equity instruments. However, this requirement does not preclude the entity from recognising a transfer within equity, i.e. a transfer from one component of equity to another.
Share-based payment transactions in which the terms of the arrangement provide the entity with a choice of settlement
