Framework for Offer for Sale (OFS) of Shares to Employees through Stock Exchange Mechanism

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..... r Sale (OFS) of Shares to Employees through Stock Exchange Mechanism 1. SEBI vide Master Circular No.SEBI/HO/MRD2/PoD-2/CIR/P/2023/171 dated October 16, 2023 at paragraph 19 of Chapter 1 has specified the comprehensive framework on Offer for Sale (OFS) of shares through stock exchange mechanism. Under the said framework, the relevant provisions regarding offering of shares to employees by th .....

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..... de the stock exchange mechanism. Based on the feedback received from stakeholders, it is observed that the said procedure is time consuming, involves additional costs and multiple activities. 3. In order to enhance efficiency, ease of compliance and reduce cost, based on deliberations in the Secondary Market Advisory Committee of SEBI and discussions with stock exchanges and clearing corporatio .....

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..... ll be mentioned in the OFS notice to the stock exchanges by the promoter(s). iv. Bidding shall be allowed during trading hours on T+1 day only. v. Floor price of the retail category shall be disclosed to the participants under the Employee category. vi. Employees shall place bids only at cut-off price of T+1 day. The allotment price shall be based on the Cut-off of the retail category, .....

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..... xii. Allotment under the Employee category shall be based on the PAN details of employees shared by the company on T-1 day. The PAN mis-matched bids shall be rejected. xiii. The promoters shall transfer the total shares of OFS on T-1 day including shares reserved for Employee category, to the designated clearing corporation. 6. The provisions of this circular shall come into effect f .....

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..... he interests of investors in securities and to promote the development of, and to regulate the securities market. 9. This circular is available on SEBI website at www.sebi.gov.in at Legal Framework - Circulars. Yours faithfully, Hruda Ranjan Sahoo Deputy General Manager Tel no.: 022-26449586 Email: hrsahoo@sebi.gov.in - Circular - Trade Notice - Public Notice - Ins .....

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