Share warrents

This query is : Resolved

Gaurav Manchanda (Querist)
Follow

20 August 2009 Can any body tell me about share warrents?
What is the basic meaning of Share warrents, what is the basic concept for introducing share warrents and what is the procedure to be followed?

Why the companies issues share warrents insted of directky issuing shares?

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
Follow

20 August 2009 Share warrant is a document issued by a company certifying that the bearer is entitled to the shares specified in it. The name of the bearer will not appear on the register of members until he surrenders the warrant to the company in return for transfer of the shares, but he may still be regarded as a member of the company under the provisions of the Articles of Association.

The company is contractually bound to recognize the bearer as shareholder.

Ankur Garg

Ankur Garg (Expert)
Follow

21 August 2009 Agree with the meaning and expert.

Upgrade to CAclubindia Pro. Subscribe Now!

Gaurav Manchanda

Gaurav Manchanda (Querist)
Follow

21 August 2009 Can any body tell me about share warrents?
What is the basic meaning of Share warrents, what is the basic concept for introducing share warrents and what is the procedure to be followed?

Why the companies issues share warrents insted of directky issuing shares?

Ankur Garg

Ankur Garg (Expert)
Follow

22 August 2009 Are you talking about share warrants issued by listed companies as per SEBI Guidelines which are later convertible in to equity shares?