Critically examine the following: Warrant cannot be issued along with public issue or right issue of specified securities.

Answer 6(d) False. As per Regulation 4 (3) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, warrants may be issued along with public issue or rights issue of specified securities subject to the following: the tenure of such warrants shall not exceed eighteen months from their date of allotment in the public/rights issue; not more than one warrant shall be attached to one specified security; the price or conversion formula of the warrants shall be determined upfront and at least 25% of the consideration amount shall also be received upfront; in case the warrant holder does not exercise the option to take equity shares against any of the warrants held by him, the consideration paid in respect of such warrant shall be forfeited by the issuer.