Offer For Sale of Shares by Promoters through the Stock Exchange Mechanism - Clarification
Summary
This SEBI circular clarifies that advertisements for promoter share sales via stock exchanges must strictly mirror the notice submitted to the exchange. It mandates stock exchanges to implement necessary systems, amend bye-laws, and disseminate these provisions to member brokers. The directive is issued under Section 11(1) of the SEBI Act to protect investor interests.
Text
contents of the advertisement... shall be restricted to the contents of the notice as given to the stock exchange under Para 5 (b)
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
issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992
Source: SecMarx — Offer For Sale of Shares by Promoters through the Stock Exchange Mechanism - Clarification. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.