Share warrant
This query is : Resolved
22 February 2017
What is money received against share warrant? It is issued against fully paid share by public company only then what money is to be received against share warrant after making it fully paid by shareholder.
02 March 2017
Please experts,kindly help me...
25 July 2025
Here’s a clear explanation about **money received against share warrants**:
---
### What is a Share Warrant?
* A **share warrant** is a document issued by a company that entitles the holder to **subscribe to shares** in the company.
* It acts like a **right to acquire shares** at a later date, usually at a predetermined price.
* Share warrants are **issued only by public companies** and **against fully paid shares**.
---
### Money Received Against Share Warrants
1. **On Issuance of Share Warrants:**
* The company receives money equal to the **amount payable on the fully paid shares** that the warrants represent.
* For example, if the warrant is against fully paid shares of Rs. 10 face value, the company receives Rs. 10 per share warrant at the time of issue.
2. **On Conversion/Exercise of Warrants:**
* When the warrant holder **exercises the warrant to get shares**, the company receives the **balance amount**, if any, payable on the shares.
* But since the shares are already fully paid, **no additional money is payable** at the time of exercise.
* The warrant holder just surrenders the warrant to get the shares transferred in their name.
---
### Summary
| Stage | Money Received |
| --------------------------------- | ------------------------------------------------------- |
| On issuance of share warrant | Amount equal to fully paid share value |
| On exercise/conversion of warrant | No additional money payable (shares already fully paid) |
---
### Key Points
* Share warrants are **issued only against fully paid shares**.
* Money received upfront covers the full value of the shares.
* Warrants are **transferable**, and transfer of warrant involves delivery of the warrant itself.
* On exercising warrant, the company issues shares without additional payment.
---
If you want, I can help you draft a **sample share warrant issuance format** or explain how this appears in accounting records. Would you like that?
---
### What is a Share Warrant?
* A **share warrant** is a document issued by a company that entitles the holder to **subscribe to shares** in the company.
* It acts like a **right to acquire shares** at a later date, usually at a predetermined price.
* Share warrants are **issued only by public companies** and **against fully paid shares**.
---
### Money Received Against Share Warrants
1. **On Issuance of Share Warrants:**
* The company receives money equal to the **amount payable on the fully paid shares** that the warrants represent.
* For example, if the warrant is against fully paid shares of Rs. 10 face value, the company receives Rs. 10 per share warrant at the time of issue.
2. **On Conversion/Exercise of Warrants:**
* When the warrant holder **exercises the warrant to get shares**, the company receives the **balance amount**, if any, payable on the shares.
* But since the shares are already fully paid, **no additional money is payable** at the time of exercise.
* The warrant holder just surrenders the warrant to get the shares transferred in their name.
---
### Summary
| Stage | Money Received |
| --------------------------------- | ------------------------------------------------------- |
| On issuance of share warrant | Amount equal to fully paid share value |
| On exercise/conversion of warrant | No additional money payable (shares already fully paid) |
---
### Key Points
* Share warrants are **issued only against fully paid shares**.
* Money received upfront covers the full value of the shares.
* Warrants are **transferable**, and transfer of warrant involves delivery of the warrant itself.
* On exercising warrant, the company issues shares without additional payment.
---
If you want, I can help you draft a **sample share warrant issuance format** or explain how this appears in accounting records. Would you like that?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Transport service POS
- GST Registration Application -Rejected
- To Whom the Invoice should be Raise to
- GSTR 9C- Table 9
- E INVOICE, E-WAY, INVOICE
- INCOME TAX NOTICE QUESTION
- Query on solved queries
- E stamp paper purchase
- When was the effective CA partnership deed? Can I use old FRN until new FRN alloted by ICAI?
- Whether to file ITC 03 for downward GST rate revision - Reg.
- Capital gain on sale of resident house by non-resident Indian
- Regarding claiming exemption under section 54ec
- Tax liability on gift amount given to blood relation
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
