Warrants

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Chandrashekhar (Querist)
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15 November 2011 Dear All,

Plaese let me know what all the types of warrants(Other than Share warrant) which a private co can issue? and also what is the procedure of issuing such warrants?

Please reply at the earliest

Regards

Chandrashekhar

RG - A Helping Hand

RG - A Helping Hand (Expert)
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15 November 2011 Issue of warrants is different from issuing share warrants in place of share certificates.

Warrants is a convertible instruments which can later be converted in equity shares. As per SEBI guidelines a listed company can issue warrants which are convertible into equity shares as per the terms of warrant issue.

These convertible warrant are totally different from share warrants which is just like share certificate.

Chandrashekhar

Chandrashekhar (Querist)
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15 November 2011 Hi,

Thanks for replay.

you are right,they bith are quite different

but can a private co issue such warrants which are convertible instument in nature to a spacific p[ersons such as promoters,F I's and Institutional Investors?

If yes what is the procedure and if not which section say so?

Please help me out in this regard

Best Regards
chandrashekhar

Chandrashekhar

Chandrashekhar (Querist)
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RG - A Helping Hand

RG - A Helping Hand (Expert)
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15 November 2011 To proceed further plz let me know---you want to raise capital and infuse funds in to the company for expansion?

Chandrashekhar

Chandrashekhar (Querist)
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15 November 2011 Hi,

The said private co by issuing such warrants entitling holders to subscribe shares in future at a predermined price as one share to every such warrant

can it do so?

Best Regards
chandrashekhar

RG - A Helping Hand

RG - A Helping Hand (Expert)
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15 November 2011 Yes it can do so.

For listed companies provisions are given in sebi guidelines. Keeping those provisions as base you may draft a scheme for issuing warrants in private company. To have better idea it is very much advisable to read SEBI provisions in this regards.

For secretarial practice you have to pass a board resolution for issuing warrants.

Chandrashekhar

Chandrashekhar (Querist)
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15 November 2011 Hi,

Ok, Thanks

will check SEBI guidlines as suggested

Regards
Chandrashekhar

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