National Stock Exchange releases comprehensive list of guidelines and schemes with a view to facilitate orderly use of Offer for Sale of Shares

National Stock Exchange releases comprehensive list of guidelines and schemes with a view to facilitate orderly use of Offer for Sale of Shares

January 25, 2019 CORP, Industries, states 0

The National Stock Exchange, through a Circular dated 18th January, 2019, has released a comprehensive list of guidelines and schemes with a view to facilitate orderly use of Offer for Sale of Shares by Promoters / non promoters (“OFS”) on Exchange platform. The Circular has been released to make various conditions and / or requirements governing the use of offer for Sale facility in a transparent manner and to have its due and strict compliance.

Applicability:

These schemes are applicable to promoters / promoters’ group and any non-promoter shareholder of eligible companies holding at least 10% of share capital of the eligible companies and the entities of companies who intend to dilute / offload their holding in listed companies in a transparent manner with wider participation.

Background:

Securities and Exchange Board of India (“SEBI”) has provided comprehensive guidelines on sale of shares through Offer for Sale (OFS) mechanism to facilitate offer for sale of shares by promoters / non-promoters of companies through a separate window. To encourage retail participation in OFS, enable other large shareholders to use the OFS mechanism and to expand the universe of the companies to use this framework, SEBI has further modified the OFS framework on various occasions through several circulars.

With an objective to facilitate orderly use of Offer for Sale of Shares by promoters / non-promoters on Exchange platform and to make various conditions and /or requirements governing the use of OFS facility in a transparent manner and to have its due and strict compliance, the scheme containing various terms / conditions have been formulated and shared by the Institution.

SourceNational Stock Exchange

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