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Upfront money under sebi preferential guidelines

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This query is : Resolved

Ankur Garg (Querist)

25 March 2009 Dear Friends,

Plz tell me is there any way out to avoid forfeiture of 10% upfront money deposited earlier in compliance with sebi Preferential allotment Guidelines as we are not able to convert warrants issued on preferential basis in to equity shares with in 18 months as required by sebi guidelines.

For your ready reference find below the extract of Preferential guideline:

Provision related to Currency of financial instruments

In case of warrants/ PCDs /FCDs/ or any other financial instruments with a provision of allotment of equity shares at a future date, either through conversion or otherwise, the currency of the instruments shall not exceed beyond 18 months from the date of issue of relevant instruments.
Regards

Neha Singhi

Neha Singhi (Expert)

25 March 2009 hi ankur,

It would be good if you can take professional help on this.

The Warrant document should be properly analysed

Rgds
Neha
(neha@nehasinghi.com)

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