Expanding the framework of Offer for Sale (OFS) of Shares through stock exchange mechanism

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....prehensive guidelines on sale of shares through Offer for Sale mechanism were issued vide circular no CIR/MRD/DP/18/2012 dated July 18, 2012. These guidelines have been modified vide circulars dated CIR/MRD/DP/04/2013 dated January 25, 2013 and CIR/MRD/DP/17/2013 dated May 30, 2013. 2. While the OFS mechanism has been successfully used to divest promoter stake, market feedback indicated that th....

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....sclosure Requirements) Regulations, 2009 and SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. 3.4. Minimum 10% of the offer size shall be reserved for retail investors. For this purpose, retail investor shall mean an individual investor who places bids for shares of total value of not more than Rs. 2 lakhs aggregated across the exchanges. If the cumulative bid value acr....

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....ail category of investors. In case of excess demand in retail category at the cut-off price, allocation shall be on proportionate basis. 3.8. Indicative price for retail and non-retail portion shall be displayed separately. 3.9. Seller shall announce intention of sale of shares latest by 5 pm on T-2 day (T day being the day of the OFS) to the stock exchange. Stock exchanges shall inform the ....

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.... bid price entered by them. Single clearing price OFS- 3.12.3. Retail investors shall be allocated shares at a discount to cut off price determined in the retail category. 3.13. In case of both of the above methodologies, the discounted price which shall be the final allocation price to the retail investors may be below the floor price. 4. Para 1, 2, 5 and para 7 of OFS circular dated ....