About Offer for Sale (OFS)

Offer For Sale(OFS) mechanism has been introduced to facilitate promoters to dilute/offload their holding in listed companies. A separate window is being provided by the Exchange for the same.

1. Eligible Buyers for OFS

1. All investors registered with the brokers of the aforementioned stock exchanges other than the promoter(s)/promoter group entities
2. In case a non-promoter shareholder offers shares through the OFS mechanism, promoters/ promoter group entities of such companies may participate in the OFS to purchase shares subject to compliance with applicable provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and Regulation 38 of securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulation, 2015.
3. Eligible trading member of the capital market segment of the Exchange shall be eligible to bid in their own account for offer for sale.
4. Any other criteria as specified by the Exchange / SEBI from time to time.

2.Eligible Sellers for OFS

1. All promoter(s)/ promoter group entities of such companies that are eligible for trading and are required to increase public shareholding to meet the minimum public shareholding requirements in terms of Rule 19(2)(b) and 19A of Securities Contracts (Regulation) Rules, 1957 (SCRR), read with Regulation 38 of securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulation, 2015.
2. The Companies with the market capitalization of Rs. 1000 crores and above, with the threshold of market capitalization computed as the average daily market capitalization of six months period prior to the month in which the OFS opens.
3. In case a non-promoter shareholder offers shares through the OFS mechanism, promoter(s) or promoter group entities of such companies may participate in the OFS to purchase shares subject to compliance with applicable provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulation, 2018, SEBI (Substantial Acquisition of Shares and takeovers) Regulation, 2011 and Regulation 38 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
4. Promoters of eligible companies shall be permitted to sell shares within a period of 2 (two) weeks from the OFS transaction to the employees of such companies. The offer to employee shall be considered as a part of the said OFS transaction.

FAQs on Offer for Sale