Moneycontrol
Last Updated : May 11, 2016 10:11 AM IST | Source: CNBC-TV18

Can't Allow Issue of Warrants to Kalanithi Maran:BSE to HC

Kalanithi Maran had demanded that 180 million warrants redeemable as equity shares be transferred to him. The warrants, if converted, would have given Maran and his airline, Kal, a share of 25 percent in SpiceJet.

Kalanithi Maran, who had earlier dragged SpiceJet to court over a share transfer dispute, has faced a huge setback. Maran had demanded that 180 million warrants redeemable as equity shares be transferred to him. 

The warrants, if converted, would have given Maran and his airline, Kal, a share of 25 percent in SpiceJet.

But on Tuesday, the Bombay Stock Exchange (BSE) told the court that it cannot allow the issue of warrants to Kalanithi. It said that the resolution is an old one and the current provisions of law do not permit the issue of warrants in such cases.

The BSE said that there is a need to accomodate for a change in the pricing of shares to allow the issue. 

The High Court of Delhi has now directed the Securities and Exchange Board of India (SEBI) to come up with a resolution for the issuance of warrants. It has given SEBI till May 18 for a decision. 

First Published on May 10, 2016 04:16 pm
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