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TMI BlogOffer For Sale of Shares by Promoters through the Stock Exchange MechanismX X X X Extracts X X X X X X X X Extracts X X X X ..... through a separate window provided by the stock exchange(s). The guidelines for the same are as under: 1. Eligibility (a) Exchanges To begin with, the facility of offer for sale of shares shall be available on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). (b) Sellers (i) All promoter(s)/ promoter group entities of such companies that are eligible for trading and are required to increase public shareholding to meet the minimum public shareholding requirements in terms Rule 19(2)(b) and 19A of Securities Contracts (Regulation) Rules, 1957 (SCRR), read with clause 40A (ii) (c) of Listing Agreement. (ii) All promoter(s)/ promoter group entities of top 100 companies based on average market capitalization of the last co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts about the offer for sale of shares through stock exchange(s) shall be made after the announcement/ notice of the offer for sale of shares has been made to the stock exchanges in accordance with para 5 (b) below; (b) All expenses relating to offer for sale of shares through stock exchange(s) shall be borne by the seller(s). 5. Operational Requirements (a) Appointment of Broker The Seller(s) would have to appoint Sellers‟ broker(s) for this purpose. The Seller‟s broker(s) may also undertake transactions on behalf of eligible buyers. (b) Announcement/ Notice of the Offer for sale of shares Seller(s) shall announce the intention of sale of shares at least one clear trading day prior to the opening of offer, along with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (d) Timelines (i) The duration of the offer for sale shall not exceed one trading day. (ii) The placing of orders by trading members shall take place during trading hours. (e) Order Placement (i) A separate window for the purpose of offer for sale of shares shall be created by stock exchanges. Modification/ Cancellation of orders/ bids will be allowed during the period of the offer. However, modification/ cancellation of orders/ bids shall not be allowed during the last 30 minutes of the duration of the offer.. (ii) Indicative Price and Cumulative orders/ bid quantity information shall be made available online by the exchanges at specific time intervals. (iii) No price bands shall be applicable for the orders/ bids placed in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available to the other bidders. (b) The orders shall be cumulated by the DSE immediately on close of the offer. Based on the methodology for allocation to be followed as disclosed in the notice, the DSE shall draw up the allocation. i.e. either on a price priority (multiple prices) basis or on a proportionate basis at a single clearing price. (c) No allocation will be made incase of order/ bid is below floor price. (d) No single bidder other than mutual funds and insurance companies shall be allocated more than 25% of the size of offer for sale. 8. Settlement (a) The settlement shall take place similar to trade for trade basis.and shall be completed latest by T + 2 day (where T is the date of the closure of the offer). The allocation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision. c. bring the provisions of this circular to the notice of the member brokers of the stock exchange and also to disseminate the same on the website. d. communicate to SEBI, the status of implementation of the provisions of this circular in the Monthly Development Report. 13. 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, Harini Balaji Deputy General Manager 022-26449372 [email protected]< ..... X X X X Extracts X X X X X X X X Extracts X X X X
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