TMI BlogPerquisites - Value of Any Specified Security / Sweat Equity Shares allotted or Transferred to An Employee or Former Employee Rule 3(8)X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. Meaning of relevant terms 1. The security or shares involved are specified security or sweat equity shares . For this purpose specified security means securities as defined in section 2(h) of the Security Contracts ((Regulation )Act and where employees stock option has been granted under any plan or scheme therefor , includes the securities offered under such plan or scheme . Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Sweat equity shares means equity shares issued by a company to its employee or its directors at a discount or for the consideration other than cash for providing know how or making available rights in the nature of intellectual property rights or value additions , by whatever name called . 2. Specified Security or sweat equity shares are allotted or transferred on or after 1-04-2009 . 3. Specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or securities shall be deducted. VALUATION OF SPECIFIED SECURITY OR SWEAT EQUITY SHARES - AS PER RULE 3(8) Situations When the share is listed on one stock exchange When the share is listing more than stock exchange Quoted Shares In a case where, on the date of exercise of the option, the share in the company is listed on a recognized stock exchange in India, the fair market value shall be the ave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hest volume of trading in such share, if the closing price, as on the date closet to the date of exercising of the option and immediately preceding such date, is recorded on more than one recognised stock exchange. For this purpose closing price of a share on a recognised stock exchange on a date shall be the price of the last settlement on such date on such stock exchange. Where the stock exchang ..... X X X X Extracts X X X X X X X X Extracts X X X X
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