What are covered warrants?
Covered warrants (or structured warrants) are issued by a company (usually a bank or securities firm) on shares of another listed company, basket of shares or an index.
In many countries, only covered call warrants (or “Call Warrants” under the SC’s Guidelines for the issue of Call Warrants) in the form of “fully-collateralised” or “non-collateralised” Call Warrants are currently permitted to be issued by authorised banks or universal brokers approved by the SC. Put Warrants are not yet permitted under the Guidelines.
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