Case Study

Assignment A.

Q.1 (i) Sweat equity is the best form of reward for those who contribute to the growth of a company because sweat equity are basically the shares that are issued by any listed organization to its staff and employees in accordance with the SEBI regulations and Companies Act of 1956. They are regarded as the best form of reward for those who contribute to the growth of a company due to the following reasons: The price of these shares can never be less than the highest value of average of weekly low and high closing prices for duration of 6 months or otherwise, during the 2 weeks time preceding the relevant. The total amount of these shares that gets issued is regarded as part of the managerial remuneration, in case shares are directly issued by a manager or a director These shares come with a lock-in period of 3 years, from the date of allotment .

(ii)Over last few years, investors have started to add investment in real estate as part of their portfolio of the overall services. Real estate business has been expanding and has experienced a rapid growth in the last few years.This basically means the purchase, management, rental, ownership and sale of real estate with a motive of making monetary profit. It also involves continuous improvement of the real estate property, which is even referred to as real estate development. Some, investors have even benefited by investing in untapped and neglected geography. Investers regard real estate as aform of asset with a very limited liquidity as compared to various other types of investments. Investors today usually add real estate in their portfolio as investment in real estate as it is highly capital intensive and is based upon a lot of cash flow.

(iii) Steps taken by SEBI

a.)Issue of guidelines: SEBI has issued guidelines to companies. These guidelines are for bringing transparency in their operations and also for avoiding exploitation of investors by one way or the other.SEBI keeps watch on all...