Capital markets regulator Sebi on Friday tweaked the procedure for offer for sale (OFS) of shares to employees through stock exchange mechanism. Employees should now bid on T+1 (trading plus one) day but at the cut-off price of T day, the regulator said, based on stakeholder feedback, according to a circular.
An OFS allows company promoters to sell their shares.
Sebi, in January, put in place the procedure for offering shares to employees via OFS, specifying that employees should bid on T+1 day at the cut-off price of T+1 day.
As per the rule, OFS to employees should be on T+1 day, along with the retail category under a new category called as “employee”.
This update will come into effect 30 days from the issuance of this circular.
In January, Sebi allowed promoters of companies can give shares to their employees under the OFS through the stock exchange mechanism in a bid to ensure ease of compliance.
Before that, shares under OFS were offered to the staff outside the stock exchange mechanism.
