Modification in Framework for Offer for Sale (OFS) of Shares to Employees through Stock Exchange Mechanism
Summary
This circular modifies the framework for Offer for Sale (OFS) of shares to employees by changing the bid pricing mechanism. Specifically, it amends paragraph 5(vi) of a previous circular to require employees to place bids at the cut-off price of T day instead of T+1 day. The modification aims to align employee bidding with the retail category's cut-off price on the same trading day.
Text
Based on feedback and SMAC deliberations, employees shall place bids on T+1 day at cut-off price of T day.
Paragraph 5(vi) is read as: Employees shall place bids only at cut-off price of T day. The allotment price shall be based on the Cut-off of the T day, subject to discount, if any.
The provisions of this circular shall come into effect from 30th day of issuance of this circular.
All MIIs are advised to take necessary steps for implementation, amend bye-laws/rules/regulations where required, and disseminate the circular to market participants.
Issued under section 11(1) of SEBI Act 1992, regulation 51 of SCRR 2018, section 26(3) of Depositories Act 1996, and regulation 97 of DP Regulations 2018.
Source: SecMarx — Modification in Framework for Offer for Sale (OFS) of Shares to Employees through Stock Exchange Mechanism. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.