Section 8(10) in Companies (Share Capital and Debentures) Rules, 2014
(10)The amount of sweat equity shares issued shall be treated as part of managerial remuneration for the purposes of sections 197 and 198 of the Act, if the following conditions are fulfilled, namely.-(a)the sweat equity shares are issued to any director or manager; and(b)they are issued for consideration other than cash, which does not take the form of an asset which can be carried to the balance sheet of the company in accordance with the applicable accounting standards.
