The term Sweat Equity Shares means the equity shares issued by a company to employees or directors at a discount for consideration other than cash or for providing know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called. Such equity shares can be issued if Not less than one year has, at the date of the issue elapsed since the date on which the company was entitled to commence business.  Some other conditiions as regards Resolutions and Stock Exchange are also of paramount importance.