Meaning

Meaning: A share warrant is a bearer document of title to shares and can be issued only by public limited companies and
that to against fully paid up shares only. A share warrant cannot be issued by a private company, because the share warrant states that its bearer is entitled to a number of shares mentioned there in. It is a negotiable document and is easily transferable by mere delivery to another person. The holder of the share warrant is entitled to receive dividend as decided by the company. A share warrant is accompanied by attached coupons for the payment of future dividends. There are three parts of a share warrant: (1) The counter foil. (2) Share Warrant proper. (3) The dividend coupons. Conditions for the issue of a share warrant: (1) Only public limited companies: Share warrant can be issued by the public limited companies. It cannot be issued by private companies. (2) gainst share certificate of fully paid up shares: A share warrant is only issued against share certificate of fully paid up shares. (3) !ro"ision in the rticles: There must be a provision in the Articles of Association regarding the issue of share warrant. If there is a provision, the company can issue a share warrant. If there is no provision in the Articles, the company cannot issue a share warrant. (#) !ermission of the Central $o"ernment: Prior permission from the Central is necessary for the issue of share warrant. overnment
(%) &hare warrant not issued originally: Share warrant are not issued originally at the time of initial issue. (') T the re(uest of the share holder: A share warrant is issued at the re!uest of the Shareholders " member and not by the company at its own initiative. In simple terms, a warrant is like an option issued by a company that gives the holder the right to buy stock from the company at a specified price within a certain designated time period. Generally speaking, warrants are issued by the company whose stock underlies the warrant and when an investor exercises a warrant, he or she buys stock from the company. A stock warrant is a way for a company to raise money through equity (stocks . A stock warrant is a smart way to own shares of a company because a warrant usually is offered at a price lower than that of a stock option. !" #ike an option, a warrant does not represent actual ownership in the stock of the company and it is simply the right (but not the obligation to buy shares at a certain price in the future. $he main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months
1. A share warrant can be issued only when the shares are fully paid up whereas a share certificate can be issued at any stage without the shares being fully paid up. 2. A share warrant is a negotiable instrument but a share certificate is not. 3. A share certificate is a document showing prima facie title to the shares represented thereby but a share warrant is the share security itself capable of easy transfer.
4. A holder of a share certificate is a member of the company but the holder of a share warrant is not, unless the articles otherwise provide. 5. A share certificate can be issued both by a public and a private company but a share warrant is issued only by a public company.
1)Shown as a part of Reserves & Surplus in the Revised Schedule VI Balance sheet 2)Represents credit side of ESOP expenses oo!ed " the co#panies which have $ranted ESOPs to their e#plo"ees %)&he ESOP expenses should e char$ed over to P'( with credit to ESOP outstandin$ account in the vestin$ period
1. What are ESOPs? An %mployee &tock 'ption (lan is when the company offers its shares to the employees. An %&'( is nothing but an option to buy the company)s share at a certain price. $his could either be at the market price (price of the share currently listed on the stock exchange , or at a preferential price (price lower than the current market price . If the firm has not yet gone public (shares are not listed on any stock exchange , it could be at whatever price the management fixes it at.

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Meaning: A share warrant is a bearer document of title to shares and can be issued only by public limited companies and

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