TaxTMI 
TaxTMI 
Framework for Offer for Sale (OFS) of Shares to Employees through Stock Exchange Mechanism
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....ect: Framework for Offer for Sale (OFS) of Shares to Employees through Stock Exchange Mechanism 1. SEBI vide Master Circular No.SEBI/HO/MRD2/PoD-2/CIR/P/2023/171 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. Under the said framework, the relevant provisions regarding offering of s....
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....ees of the eligible company is happening outside the stock exchange mechanism. Based on the feedback received from stakeholders, it is observed that the said procedure is time consuming, involves additional costs and multiple activities. 3. In order to enhance efficiency, ease of compliance and reduce cost, based on deliberations in the Secondary Market Advisory Committee of SEBI and discussion....
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....mber of shares shall be reserved for the employees. The same shall be mentioned in the OFS notice to the stock exchanges by the promoter(s). iv. Bidding shall be allowed during trading hours on T+1 day only. v. Floor price of the retail category shall be disclosed to the participants under the "Employee" category. vi. Employees shall place bids only at cut-off price of T....
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....website. xi. The bid book of "Employee" Category shall be segregated from Retail Category book for allotment. xii. Allotment under the "Employee" category shall be based on the PAN details of employees shared by the company on T-1 day. The PAN mis-matched bids shall be rejected. xiii. The promoters shall transfer the total shares of OFS on T-1 day including shares reserv....