Expanding the framework of Offer for Sale (OFS) of Shares through stock exchange mechanism

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..... lines on sale of shares through Offer for Sale mechanism were issued vide circular no CIR/MRD/DP/18/2012 dated July 18, 2012. These guidelines have been modified vide circulars dated CIR/MRD/DP/04/2013 dated January 25, 2013 and CIR/MRD/DP/17/2013 dated May 30, 2013. 2. While the OFS mechanism has been successfully used to divest promoter stake, market feedback indicated that there is a need to .....

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..... ments) Regulations, 2009 and SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. 3.4. Minimum 10% of the offer size shall be reserved for retail investors. For this purpose, retail investor shall mean an individual investor who places bids for shares of total value of not more than ₹ 2 lakhs aggregated across the exchanges. If the cumulative bid value across exchange .....

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..... category of investors. In case of excess demand in retail category at the cut-off price, allocation shall be on proportionate basis. 3.8. Indicative price for retail and non-retail portion shall be displayed separately. 3.9. Seller shall announce intention of sale of shares latest by 5 pm on T-2 day (T day being the day of the OFS) to the stock exchange. Stock exchanges shall inform the mark .....

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..... id price entered by them. Single clearing price OFS- 3.12.3. Retail investors shall be allocated shares at a discount to cut off price determined in the retail category. 3.13. In case of both of the above methodologies, the discounted price which shall be the final allocation price to the retail investors may be below the floor price. 4. Para 1, 2, 5 and para 7 of OFS circular dated .....

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..... their website. 6. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours faithfully, Maninder Cheema Deputy General Manager Email: [email protected] .....

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