Discussion
The equity shares issued by a company to its directors or employees for making available intellectual property rights or for know-how are known as :
Answer: C
They are sweat equity shares.
Section 2(88) of the Companies Act, 2013 defines sweat equity shares as equity shares issued by a company to its directors or employees at a discount or for consideration other than cash, for providing know-how or making available rights in the nature of intellectual property rights or value additions. Section 54 governs their issue.
Bonus shares are issued free to existing shareholders out of reserves. Demat refers to shares held in electronic form, not a type of issue, and 'special equity shares' is not a statutory category.
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