SEBI gives relaxation on the quantum of sweat equity

Sweat equity shares are essential when creating a startup with low amounts of funding. Discuss this in the context of recent relaxation brought out by the Securities and Exchanges Board of India.(250 words)

Approach:

• Introduce by defining Sweat Equity
• Illustrate the utility of sweat equity in a company
• Highlight major provisions of recent relaxation introduced by SEBI
• Way forward / Conclusion