COs CAN NOW ISSUE NCDs WITH WARRANTS TO QIBs

SEBI allowed companies to issue non-convertible debentures (NCDs) along with warrants - which can be converted into shares - to qualified institutional buyers (QIB), a step to encourage participation of institutional buyers in the capital market. QIBs can subscribe to the combined offering of NCDs with warrants or to individual instruments issued by a listed company. Institutional
buyers like mutual funds, banks and insurance companies can subscribe to combined offerings of
companies. SEBI added that NCDs and warrants can be separately listed on stock exchanges and
traded. It has fixed the minimum contract value for trading of NCDs warrants at Rs. 1 lakh.