/ SEBI Tweaks OFS Norms To Encourage Employees’ Participation ~ Ways2Capital|Stock Tips|Stock Market Tips|Intraday Stock Tips|Stock Trading Tips|NSE BSE Tips

Wednesday, 28 June 2017

SEBI allows companies’ promoters to sell shares within two weeks from OFS (offer for sale) transaction to their employees reported PTI. After the OFS the companies cannot buy or sell their shares for 12 weeks, in order to streamline the process of OFS with an objective of maximum participation by employees, SEBI has changed the existing provision with respect to restrictions on sale of shares by promoter’s post-OFS.

SEBI said in circular that employees of eligible companies have permission to buy shares of the respective companies within a period of two weeks from OFS transaction, this offer is part of the said OFS transaction. Promoters can offer shares to employees at the price discovered in the OFS transaction, at their discretion.

Besides promoters are libel to disclosures in the OFS notice to the exchange, including number of shares offered to employees and discount offered, if any. This mechanism was introduced in February 2012 as a fast mode for sale of shares by promoters.

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