SEBI vide Master Circular dated October 16, 2023 at paragraph 19 of Chapter 1 has specified the comprehensive framework on Offer for Sale (OFS) of shares through stock exchange mechanism. Further, SEBI vide Circular dated January 23, 2024 issued Framework for Offer for Sale (OFS) of Shares to Employees through Stock Exchange Mechanism.
Paragraph 5 of SEBI Circular dated January 23, 2024 prescribed the procedure for offering of shares to the employees in OFS through stock exchanges.
Paragraphs 5 (i) and (vi) of the said circular states as under:
“5. (i) OFS to employees shall be on T+1 day along with the retail category under a new category called as “Employee”.
(vi) Employees shall place bids only at the cut-off price of T+1 day. The allotment price shall be based on the Cut-off of the retail category, subject to discount, if any.”
Based on the feedback received from certain stakeholders and deliberations in the Secondary Market Advisory Committee of SEBI (SMAC), it has been decided that employees shall place bids on T+1 day at a cut-off price of T day.
Accordingly, paragraph 5(vi) of SEBI Circular dated January 23, 2024 shall be read as under:
“5. (vi) 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
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