Offer For Sale of Shares by Promoters through the Stock Exchange Mechanism
Summary
This SEBI circular modifies the order placement provisions of a previous 2012 directive regarding the offer for sale of shares by promoters. It mandates that exchanges disclose indicative prices only during the last half-hour of the offer duration, reflecting the volume-weighted average price of exhausted bids. Stock exchanges are instructed to implement these changes through system updates, regulatory amendments, and reporting.
Text
Cumulative orders/ bid quantity information shall be made available online by the exchanges at specific time intervals. The indicative price shall be disclosed by the exchanges only during the last half an hour of the duration of the offer for sale.
The indicative price shall reflect the volume weighted average price of all the bids that have exhausted the quantity offered.
take necessary steps and put in place necessary systems for implementation of the above.
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision.
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.
communicate to SEBI, the status of implementation of the provisions of this circular in the Monthly Development Report.
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.
Source: SecMarx — Offer For Sale of Shares by Promoters through the Stock Exchange Mechanism. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.