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Byline: Nuntawun Polkuamdee
Apr. 3--Listed companies will be prohibited from issuing warrants equal to more than 30 percent of their paid-up capital, the Securities and Exchange Commission announced yesterday.
The rule is aimed at protecting minority investors from excessive dilution due to future warrant conversions. Waivers will be granted in cases of warrant issues from debt restructuring or under employee stock option programmes.
The SEC will hold a public hearing before implementing the new regulation, said Waratchya Srimachand, director of the SEC corporate finance department.
Listed companies have been free to issue warrants ...
Source: HighBeam Research, SEC to Restrict Size of Warrant Issues.