Security Analysis and Portfolio Management

i. Sweat equity shares are shares issued by a listed company to its employees and directors in accordance with the Companies Act, 1956 and SEBI Regulations Issue of sweat equity by a listed company. A company whose equity shares are listed on a recognized stock exchange may issue sweat promoter equity shares, to its employees and directors in accordance with the Companies Act, 1956 and SEBI Regulations. In case of issue of sweat equity shares to promoters, approval by a simple majority of the shareholders in a general meeting is required. The promoters to who such sweat equity shares are to be issued cannot participate in such a meeting. The price of sweat equity shares cannot be less than the maximum value of the average of the weekly high and low of the closing prices of the related equity shares during the six months preceding the relevant date or during the two weeks preceding the relevant. The amount of sweat equity shares issued will be treated as part of managerial remuneration if the shares are issued to any director or manager for non-cash consideration, which does not take the form of an asset that can be shown in the balance sheet of the company. Sweat equity shares have a lock-in period of three years from the date of allotment. The sweat equity issued by a listed company will be eligible for listing only if such issues are in accordance with SEBI regulations

ii. Real estate buying property is an equally strenuous investment decision. Real estate investment generally offers easy entry and good hedge against inflation. But, during deflationary and recessionary periods, the value of such investments may decline. Real estate investments are classified as direct or indirect. In a direct investment, the investor holds legal title to the property. Direct real estate investments include single-family dwellings, duplexes, apartments, land and commercial property. In case of indirect investment, investors appoint a trustee to hold legal title on...