TMI BlogComprehensive guidelines on Offer For Sale (OFS) of Shares by Promoters through the Stock Exchange MechanismX X X X Extracts X X X X X X X X Extracts X X X X ..... sive guidelines on Offer For Sale (OFS) of Shares by Promoters through the Stock Exchange Mechanism. 1. Comprehensive guidelines on sale of shares through OFS mechanism were issued vide circular no CIR/MRD/DP/18/2012 dated July 18, 2012. Based on past experience of sale of shares through OFS, the mechanism of OFS has been found to be useful by market participants and popular for offloading sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rice of all the valid bids. 2.3. Para 5(d) (ii) shall be replaced by the following: Orders shall be placed during trading hours. 2.4. Para 5 (d) (iii) shall be omitted. 2.5. Para 5(e) (i) shall be replaced by the following: A separate window for the purpose of sale of shares through OFS shall be created. The following orders shall be valid in the OFS window: A. Orders with 100% o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on all valid bids/orders. 2.7. Para 6 (a) shall be replaced by the following: Clearing Corporation shall collect 100% margin in cash from non-institutional investors. In case of institutional investors who place orders/bids with 100% of margin upfront, custodian confirmation shall be within trading hours. In case of institutional investors who place orders without upfront margin, custodian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) (a) shall be replaced by the following: In case of default in pay-in by any investor, 10% of the order value shall be charged as penalty from the investor and collected from the broker. This amount shall be credited to the Investor Protection Fund of the stock exchange. 3. All other conditions for sale of shares through OFS framework shall be as per SEBI circular CIR/MRD/DP/18/2012 dated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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