To bring more transparency in capital markets, the Securities and Exchange Board of India (Sebi) on Wednesday said listed firms would have to disclose details of the utilisation of funds raised through warrants. The new rule, a part of its amendments to the equity listing agreement, will take effect immediately. “In order to enhance disclosure requirements, listed entities have been mandated to disclose utilisation of funds raised upon conversion/exercise of warrants issued along with the public or rights issue of specified securities,” Sebi said in a circular. A warrant is the right, but not the obligation, to buy or sell a certain quantity of an underlying instrument at an agreed price. Experts say this is in continuation of the regulator’s policy to monitor the use of proceeds of money raised through different market instruments.
Source: Business Standard
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