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ARTICLE · 10 SEPTEMBER 2024

Offer For Sale

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SEBI, vide circular dated January 5, 2024, introduced a framework to provide an option for promoters to offer shares to employees in offer for sale ("OFS") through the stock exchange mechanism, with effect from February 22, 2024.

IndiaFinance and Banking
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Framework for offer for sale of shares to employees

SEBI, vide circular dated January 5, 2024, introduced a framework to provide an option for promoters to offer shares to employees in offer for sale ("OFS") through the stock exchange mechanism, with effect from February 22, 2024. It is an additional option to the existing procedure of OFS to employees outside the exchange mechanism. The procedure for offering shares through stock exchanges is detailed in the circular. The maximum bid amount will be INR 5,00,000 (Indian Rupees five lakh) and each employee will be eligible for an allotment of equity shares up to INR 2,00,000 (Indian Rupees two lakh).

Amendments to the bidding process for employees participating in OFS

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