Securities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018 Part II ISSUE OF CONVERTIBLE DEBT INSTRUMENTS AND WARRANTS
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Warrant issuance rules require capped tenure, upfront exercise consideration, disclosure of pricing formula, and forfeiture for non-exercise. Regulation 67 requires that warrants issued in a rights issue have a fixed maximum tenure, may be attached one or more to a specified security, and have ... Summary
Warrant issuance rules require capped tenure, upfront exercise consideration, disclosure of pricing formula, and forfeiture for non-exercise.
Regulation 67 requires that warrants issued in a rights issue have a fixed maximum tenure, may be attached one or more to a specified security, and have their exercise price or a formula disclosed in the letter of offer. A portion of consideration tied to the exercise price must be received upfront, with formula-based pricing requiring calculation with reference to the record date. If a warrant holder does not exercise any warrant within a prescribed period after paying consideration, the consideration for those unexercised warrants is forfeited by the issuer.
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