Till now, solely promoter and promoter group entities have been allowed to promote stake by the supply on the market on bourses.
In case a non-promoter shareholder of an organization provides scrips by 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 stated 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 shall be computed as the common every day market cap for six months’ interval previous to the month during which the OFS opens.
Based on the revised framework, the minimal dimension of an OFS should be Rs 25 crore. Nevertheless, the dimensions of the supply might be lesser than Rs 25 crore for promoter and promoter group entities to fulfill minimal public shareholding norm in a single tranche, the regulator stated.
The vendor of shares within the OFS should appoint a dealer for this function, acknowledged the regulator pointers. .
Traders opting to purchase shares supplied within the OFS can also rent a dealer. On this case, the dealer to the vendor may undertake transactions on behalf of eligible consumers. In keeping with the earlier norms, the vendor within the OFS can supply a reduction to retail traders. The main points of low cost and share 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 supply the choice to position their bids on the reduce off value, along with putting value bids.
The unitholders of listed actual property funding trusts (REITs) and infrastructure funding trusts (InvITs) are additionally allowed to conduct an OFS by the exchanges. The OFS framework for REITs and InvITs shall be equal to the OFS framework for the listed firms.
The revised framework will come into impact from February 9, Sebi stated.
(Disclaimer: Suggestions, options, views and opinions given by the specialists are their very own. These don’t signify the views of Financial Instances)