Share Warrant

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amarendra Jena (Querist)
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24 April 2010 Dear all,

Can anybody help me regarding issue of share warrant?
and also need
1.Check list of issue of share warrant
2.Format of share warrant
3.is it require sebi guideline?

Amar

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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24 April 2010 ttp://www.hugovandermolen.nl/scripophily/picsUK/GalangBesar.jpg

The procedures regarding issue of a share warrant are as follows:-

(1) Written application: TO convert a share certificate into share warrant, a share holder has to submit a written application. Along with the application, he has to send the original share certificate. He has also to pay the necessary stamp duty and fees for conversion.

(2) Issue of Lodgement ticket: After receiving the application and the share certificate, the secretary issues a lodgement ticket. It is an official acknowledgment for the deposit of share certificate for conversion into share warrant.

(3) Scrutiny documents: The secretary will then check the documents submitted by the share holder to convert a share certificate into a share warrant. To do such checking, he has to refer the register of members.

(4) Board sanction: A meeting of the Board of Directors will be called. In this meeting, the secretary will place the application of conversion of share certificate into a share warrant for approval and consideration by the Board of Directors. The Board of Directors will pass a necessary resolution to issue a share warrant, where in the secretary will be authorized to take necessary steps to issue a share warrant.

(5) Preparation of share warrant and making entries in the Register of members: After the Board of Directors have passed a resolution to issue a share warrant, the secretary will cancel the share certificate and prepares a share warrant which is duly stamped, sealed and signed. Necessary details like the distinctive number of shares entered in the share warrant, the date of issue of the share warrant are entered in the Register of members.

(6) Intimation about the share warrant: Once the share warrant is ready, the secretary informs the concerned members to come and collect the share warrant against the lodgement ticket issued to him.

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amarendra Jena

amarendra Jena (Querist)
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25 April 2010 Dear Manmohan,

Thank u for immediately reply.

Can u inform me any format for share warrant and any sebi guidelines to follow?
Regards
Amar

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2025 Sure! Here's a brief overview and a simple format for Share Warrant, plus key SEBI guidelines you should be aware of.

1. Format of Share Warrant
A share warrant is generally a letter or certificate issued by the company, certifying that the holder is entitled to the shares mentioned, subject to surrender of the warrant.

Here’s a basic sample format:

[Company Letterhead]

SHARE WARRANT

Warrant No.: ___________
Date of Issue: ___________

This is to certify that [Name of Warrant Holder], residing at [Address], is entitled to [Number] fully paid equity shares of [Face Value] each of [Company Name], subject to the surrender of this warrant to the Company.

The shares represented by this warrant are transferable only upon delivery of this warrant duly endorsed.

By order of the Board of Directors,
For [Company Name]

Authorized Signatory

2. SEBI Guidelines Related to Share Warrants
Share warrants are issued only by public companies under the Companies Act, 2013.

The company must issue warrants against fully paid shares only.

Warrants are transferable by mere delivery, unlike shares which require a formal transfer deed.

SEBI regulations govern listed companies and companies raising capital from the public; hence, warrants issued by listed companies must comply with SEBI (Issue of Capital and Disclosure Requirements) Regulations.

Disclosure Requirements:
Companies must disclose issuance of warrants to stock exchanges and in financial statements.

Investor Protection: SEBI requires strict adherence to guidelines on issuance, transfer, and redemption of warrants to protect investors.

3. Where to Find SEBI Guidelines?
SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations), especially Chapter related to Warrants.

Companies Act, 2013 — Sections 42, 62 (Rights issue, preferential allotment including warrants).

SEBI Circulars and FAQs on share warrants.

You can access these on:

SEBI Website

MCA Website

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