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FINANCIAL INNOVATIONS
PRESENTED BY :
GROUP 4
CINISH. ABRAHAM
NITESH KUMAR
SANJEEV AGARWAL
SHRUTI SRINIVAS
SREENATH.M
AGENDA
Warrants
Latest SEBI Guidelines
ADRs
GDRs
Dual Currency Bonds
Other Financial Innovations
WARRANTS
Warrants are frequently attached to bonds or
Preferred stock
Used as a sweetener
Are detachable and can be sold independently
of the bond or stock
Bull Market Instruments
Dominated by smaller companies
Today, 75% of warrants issued by investment
trusts
ADVANTAGES
Flexible Instruments
Lower Issue Costs
Lower Servicing Costs
Better than rights issue
Appreciated as a “free gift”
DISADVANTAGES
No dividend or any other income
Limited Rights
Limited Range
Lack of Information
DIFFERENCE BETWEEN WARRANTS & OPTIONS
WARRANTS OPTIONS
Company
Companyshares
sharestraded
tradedin
inIndia
India US Investors
Depositary
Local
LocalCustodian
Custodian(Deutsche
(DeutscheBank)
Bank)Agreement Depositary
Depositary(Deutsche
(DeutscheBank)
Bank)
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Name Last Trade