SEBI Updates Procedure for Employee Share Sales via OFS
SEBI has revised the procedure for the Offer For Sale (OFS) of shares to employees via stock exchange mechanisms. Employees must now bid on T+1 day at the T day cut-off price. These changes come in response to stakeholder feedback and will be effective in 30 days.
![SEBI Updates Procedure for Employee Share Sales via OFS](https://devdiscourse.blob.core.windows.net/aiimagegallery/07_06_2024_18_46_20_202022.png)
- Country:
- India
In a significant update, the Securities and Exchange Board of India (SEBI) has revised the procedural guidelines for the Offer For Sale (OFS) of shares to employees through the stock exchange mechanism. This adjustment mandates that employees place their bids on T+1 day but at the cut-off price determined on the T day.
Based on extensive stakeholder feedback, the regulatory body has outlined this modification in a recent circular. Previously, the practice required employees to bid at the cut-off price of T+1 day. This regulatory change, set to take effect 30 days from the circular's issuance, aims to streamline the process and ensure better compliance.
Historically, SEBI allowed company promoters to offer shares to employees outside the stock exchange framework. However, in January, a shift was made to include employees under the OFS mechanism, promoting transparency and efficiency in share sales.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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