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?
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.
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?
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?
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.
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