What is Sweat Equity?

Important banking qna for banking aspirants, which is helpful in banking exam.

Created On: Jun 6, 2015 17:03 IST

What is Sweat Equity?

  • To compensate the directors and employees, the concept of sweat equity has come into existence. It is for cementing the relationship of key managerial personnel to the company.
  • Sweat equity is the new equity instrument floated in the companies  (Amendment) Ordinance 1998.
  • Sweat equity is a party's contribution to a project in the form of effort, as opposed to financial equity, which is a contribution in the form of capital.


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