FAQs on e-OFS
Background:
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.
Offer for sale (OFS) is a method used to reduce & reverse the concentration of stock ownership, making it more scattered and dispersed in the hands of many shareholders. It is a mechanism to transfer and distribute ownership of a company from the promoters/institutions to other investors in the stock market.
OFS order can be placed through the NSE e-OFS platform which replaced the erstwhile NEAT based OFS platform w.e.f. Feb 20, 2020
No, this facility is only available to trading members of the exchange. All Investors can participate for placing bids through their registered Trading members.
The following are list of investor categories registered with NSE that can participate in OFS.
-
- Retail Investors
- NRIs
- Foreign Portfolio Investors
- Qualified Institutional Buyers
- Corporates
- Mutual Funds
- Insurance Companies
- Trusts & HUF
- All trading members registered with the exchange can access this platform.
- Members wishing to access the e-OFS platform shall place request for e-OFS access from ENIT
- An email shall be sent with Admin User credentials & password link on the email provided by the member.
- Member shall receive password & establish successful login after providing OTP received on Mobile/E-mail.
- Members can then login into the e-OFS platform using admin user & thereafter create branch & user ids to place orders on NSE e-OFS platform.
Details of the OFS are declared by the seller to the exchange one day prior to the OFS. The details include the following information:
- Name of company issuing OFS
- Date & Time of the opening & closing of the offer
- Name of the exchange, it can be NSE, BSE or both. However one will designated Stock Exchange.
- Number of shares offered for sale
- Name of the broker on behalf of the seller
- Allocation methodology: Price priority or proportionate basis
- Any other information as provided by the seller along with the terms & conditions.
The announcement will be disseminated by the Exchange on its website immediately to inform the market.
Mock sessions are conducted only when a new functionality is released for testing to the registered members of the exchange.
Existing APIs for NNF shall be discontinued and only Web API shall be available. The e-OFS web API document is available on the following link. https://www1.nseindia.com/technology/content/trading_protocols.htm > Protocol documents for WEB based interfaces > eOFS
Member connecting via API are requested to create users and enable API access post receipt of Admin user credentials. Members are requested to provide Admin user creation request by providing the below details on ENIT portal on the path: Membership > Enablement > eOFS
Member has to provide aone time request on ENIT for Admin creation. Subsequently Admin has the facility to create users and branches as per their requirement.
Cut-Off price is the lowest price at which an investor is allocated shares during an OFS. This way, the investor can simply apply for shares at the cut-off price without worrying about price discovery at the time of bidding.
Floor price is the minimum price at which seller wants to sell his shares. However, this information is not declared to the market & is informed to the designated exchange one day prior to the day of OFS after the closure of the trading hours.
Shares are allotted by the designated stock exchange to the trading members on the basis of allocation methodology i.e. Proportionate basis or Price Time Priority basis
Yes. the issuer of the OFS can withdraw his offer before the opening of the OFS
Yes, Circular number NSE/CMTR/62927 dated July 12, 2024 can be referred to which explains the revised operating guidelines & terms & conditions of OFS by NSEIL.
You can reach the Member Service Department at 1800 266 0050 (Option 1) or email us at msm@nse.co.in
Disclaimer:
“This document/FAQ has been drafted in order to ease Member’s/reader’s understanding of the subject matter. The information and/ or content (collectively ‘Information’) provided herein is general information only and NSE has issued detailed circulars to that effect from time to time, While reasonable care has been exercised to ensure that the Information is adequate and reliable, no representation is made by NSE as to its accuracy or completeness and NSE, its affiliates and subsidiaries accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. The readers are expected to undertake their own diligence and are advised not to solely rely on this document. Any such reliance shall be at the reader’s own risk. Nothing stated herein shall bind NSE, in any manner whatsoever.”
Updated on: 23/10/2024
