Sweat equity is one kind of Equity share, which was introduced in the Ordinance 1998, smoothing the progress of the companies to get hold of the technical know-how, intellectual property through the issue of equity shares.

In other words, "The equity shares which are issued at discount to employees and directors and consideration other than cash for Technical know-how, intellectual property are known as sweat security."

In general the sweat security is issued by the companies in two different categories:
1. Issued at preferential pricing more specifically for employees

Issued at face value, that may be either at par or above par


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