Comprehensive guidelines on Offer For Sale (OFS) of Shares by Promoters through the Stock Exchange Mechanism
Summary
SEBI issues a circular amending comprehensive guidelines on the Offer for Sale (OFS) of shares by promoters through stock exchanges. The amendment specifically replaces paragraph 5(b) to mandate that sellers announce their intention to sell shares at least one day prior to the offer. All other conditions remain governed by previous SEBI circulars dated July 18, 2012, and January 25, 2013.
Text
Seller(s) shall announce the intention of sale of shares at least on the day prior to the offer for sale, along with the following information:
All other conditions for sale of shares through OFS framework shall be as per SEBI Circular CIR/MRD/DP/18/2012 dated July 18, 2012 and circular CIR/MRD/DP/04/2012 dated January 25, 2013.
Stock Exchanges are directed to bring the provisions of this circular to the notice of the stock brokers and also disseminate the same on their website.
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 — Comprehensive guidelines on Offer For Sale (OFS) of Shares by Promoters through the Stock Exchange Mechanism. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.