The department of company affairs is considering allowing unlisted companies to issue employee stock options besides framing guidelines for allotting sweat equity to their employees.
The department is setting up a high-powered committee to examine the two issues and prescribe norms for the issue of sweat equity by unlisted companies. Official sources told Business Standard that the committee was expected to be constituted over the next few days.
Sources said the committee would also address the issue of outsourcing of personnel for carrying out inspection of books of accounts.
A committee under corporate lawyer Shardull Shroff is already in place to look at preferential allotment of shares and the fees paid by corporates. It has, however, not met since it was constituted about two months ago.
Amendments to the Companies Act, 1956, have been made to permit corporates to issue sweat equity to promoter-directors and employees. However, sources said despite the DCA
