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Wednesday, December 10, 2008

[SEBI-DIP] non-convertible debentures with warrants allowed in QIP

Issuance of "Non-convertible Debentures with Warrants" (i.e., NCDs with warrants) under Chapter XIII-A

SEBI vide circular No. SEBI/CFD/DIL/DIP/33/2008/08/12 dated 8th Dec 2008 made the following amendments in Chapter XIII-A of the SEBI (DIP) Guidelines on "Guidelines for Qualified Institutions Placement (QIP)" enable a listed company to make a combined offering of Non-Convertible Debentures (NCDs) with warrants. Qualified Institutional Buyers (QIBs) can subscribe to the combined offering of NCDs with warrants or to the individual instruments, i.e., either NCDs or warrants, where separate books are run for NCDs/ warrants.

The company is however required to obtain relaxation from the applicability of the provisions of Rule 19(2)(b), read with Rule 19(4) of the Securities Contracts (Regulation) Rules, 1957 for listing/ trading of the warrants.

The amendments made vide this circular shall come into force with immediate effect.


Click here to get the amended DIP guidelines

Thanks & Regards
Alagar
CSChennai
Mobile: 919790906827 / 919884731993
email id: alagarcs@gmail.com; csalagar@yahoo.in

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