Comprehensive Framework on Offer for Sale of Shares
Comprehensive Framework on Offer for Sale (OFS) of Shares through Stock Exchange Mechanism
A. Based on the feedback received from various market participants, discussions with Stock Exchanges, Clearing Corporations and deliberations in Secondary Market Advisory Committee (SMAC) of SEBI, it has been decided to modify certain provisions of the existing OFS framework through Stock Exchange Mechanism. The comprehensive OFS framework is given as under:
1.0 Definitions
1.1“Floor Price” is the minimum price at which the seller intends to sell the shares.
1.2“Illiquid Shares” are securities not forming part of “Most liquid shares” and “Liquid shares”.
1.3“Indicative Price” is the volume weighted average price of all the valid bids.
1.4“Liquid Shares” are listed securities forming part of Group I securities as per SEBI circular No.MRD/DoP/SE/Cir-07/2005 dated February 23, 2005 and having mean impact cost of greater than 0.05 percent and less than or equal to 0.10 percent for a trade of Rupees One Lakh.
1.5“Most Liquid Shares” are listed securities forming part of Group I securities as per SEBI Circular No.MRD/DoP/SE/Cir-07/2005 dated February 23, 2005 and having mean impact cost of up to 0.05 percent for a trade of Rupees One Lakh.
Continue Reading…
Read More on SEBI
