Section 67 in The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
67. Issue of warrants.
- An issuer shall be eligible to issue warrants subject to the following:(a)the tenure of such warrants shall not exceed eighteen months from their date of allotment in the rights issue;(b)a specified security may have one or more warrants attached to it;(c)the price or formula for determination of exercise price of the warrants shall be determined upfront and disclosed in the letter of offer and at least twenty-five per cent. of the consideration amount based on the exercise price shall also be received upfront:Provided that in case the exercise price of warrants is based on a formula, twenty-five per cent. consideration amount calculated as per the formula with reference date being the record date shall be received upfront.(d)in case the warrant holder does not exercise the option to take equity shares against any of the warrants held by the warrant holder, within three months from the date of payment of consideration, such consideration made in respect of such warrants shall be forfeited by the issuer.
