The Securities and Exchange Board of India (SEBI) on January 10, 2023, issued a circular regarding modifications in certain provisions of the existing Offer For Sale framework through the Stock Exchange Mechanism. The facility of OFS of shares shall be available on the Bombay Stock Exchange(BSE), National Stock Exchange (NSE), and Metropolitan Stock Exchange of India (MSEI). All investors registered with the brokers of the above mentioned stock exchanges other than the promoter(s)or promoter group entities shall be eligible to buy shares under OFS.
In case the offer is by the non-promoter shareholder, the promoter(s)or promoter group entities may participate in the OFS. The cooling off period for the transaction (i.e. purchase or sale prior to and after the offer) in the shares of the company for the promoter(s)or promoter group entities and non-promoter shareholders for offering the shares through OFS mechanism shall be based on the liquidity of the shares on exchanges and are as under:
- For most liquid shares: +2 weeks
- For liquid shares: +4 weeks and
- For illiquid shares: +12 weeks
