SEBI/CFD/DIL/SE/2008/08/12
December 8, 2008
To The
Managing Director / Executive Director / Administrator of All StockExchanges
Dear Sirs,
Sub.: Listing and trading of warrants issued as part of a Qualified Institutions
Placement (QIP) being a combined issuance of Non-convertible
Debentures with Warrants
1. SEBI has, vide circular no. SEBI/CFD/DIL/DIP/33/2008/08/12 dated December
8, 2008, amended the SEBI (Disclosure and Investor Protection (DIP))
Guidelines, 2000 to permit a listed company to make a combined offering of
Non-convertible Debentures (NCDs) with warrants through the QIP
mechanism, in terms of the provisions of Chapter XIII-A of the Guidelines.
2. NCDs and warrants issued pursuant to a combined offering as mentioned
above, can be listed and traded separately. No relaxation from the applicability
of the provisions of Rule 19(2)(b) of the Securities Contracts (Regulation)
Rules, 1957 (SCRR) shall be required for listing of the NCDs, as this relaxation
is available pursuant to Regulation 22(b)(i) of the SEBI (Issue and Listing of
Debt Securities) Regulations, 2008. However, for listing and trading of the
warrants, relaxation from the applicability of the provisions of the Rule 19(2)(b)
of SCRR is required.
3. The minimum contract value for trading of NCDs/ warrants has been set at
Rs.1 lacs.
4. The amendments made vide this circular shall come into force with immediate
effect.
Neelam Bhardwaj
General Manager
Corporation Finance Department
Division of Issues and Listing
Phone: +91 22 2644 9350 (D), +91 22 2644 9000 (Extn: 9350)
Fax: +91 22 2644 9016 Email:
neelamb@sebi.gov.in2
5. This circular is issued in exercise of powers conferred by sub-section (1) of
Section 11, read with sub-section (2) of Section 11A of the Securities and
Exchange Board of India Act, 1992, to protect the interests of investors in
securities and to promote the development of, and to regulate the securities
market.
6. This circular is available on SEBI website at
www.sebi.gov.in under thecategories “Legal Framework” and “Issues and Listing”.
Yours faithfully,
Neelam Bhardwaj
CAclubindia
CA. Shikha
Published in Shares & StockSource : http://www.sebi.gov.in/circulars/2008/dilse2008.pdf