Sebi provides clarity on lock-in period requirement for unlisted warrants

Markets regulator Sebi Monday provided clarity on the lock-in period required for unlisted warrants. The clarification has been given as part of an informal guidance sought by Jindal Steel & Power Ltd (JSPL) regarding the applicability of ICDR (Issue of Capital and Disclosure Requirements) with respect to such warrants. JSPL had issued 4.8 crore warrants to Opelina Finance and Investment Ltd, one of the promoter group entity, on preferential basis in November 2017. A warrant is a derivative that gives the right, but not the obligation, to buy or sell a security, most commonly an equity, at a certain price before expiration. To have a clarity on regulatory requirements with respect to the periodicity of lock-in of pre-preferential holding of the promoters' shares in the case of allotment of warrants convertible into equity shares as well as whether the pre-preferential holdings of the promoters, which were put under lock-in can be released, the company sought an informal guidance ..

from Markets http://bit.ly/2MA7c3G