Till now, solely promoter and promoter group entities have been allowed to promote stake by way of the provide on the market on bourses.
In case a non-promoter shareholder of an organization gives scrips by way of the OFS mechanism, promoter or promoter group entities can take part in the identical to buy shares topic to compliance of sure provisions, the market regulator mentioned in a launch.
The OFS mechanism will now be accessible to firms with a market capitalisation of Rs 1,000 crore and above. The edge of the market cap can be computed as the typical every day market cap for six months’ interval previous to the month through which the OFS opens.
In accordance with the revised framework, the minimal measurement of an OFS should be Rs 25 crore. Nevertheless, the scale of the provide could be lesser than Rs 25 crore for promoter and promoter group entities to satisfy minimal public shareholding norm in a single tranche, the regulator mentioned.
The vendor of shares within the OFS should appoint a dealer for this function, said the regulator pointers. .
Traders opting to purchase shares provided within the OFS can also rent a dealer. On this case, the dealer to the vendor may undertake transactions on behalf of eligible consumers. According to the earlier norms, the vendor within the OFS can provide a reduction to retail traders. The main points of low cost and proportion of the reservation for retail traders should be disclosed upfront within the discover of OFS to the bourses.
To make it simpler for retail traders to take part within the OFS, Sebi has made it necessary for the sellers to offer the choice to position their bids on the lower off worth, along with inserting worth bids.
The unitholders of listed actual property funding trusts (REITs) and infrastructure funding trusts (InvITs) are additionally allowed to conduct an OFS by way of the exchanges. The OFS framework for REITs and InvITs can be equal to the OFS framework for the listed firms.
The revised framework will come into impact from February 9, Sebi mentioned.
(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t characterize the views of Financial Occasions)
