SEBI vide Circular No. CIR/MRD/DP/65/2017 on Tuesday, 27th June, 2017 has modified the existing provision with respect to restriction on sale of shares by promoters post OFS as follows:
- Promoters of eligible companies shall be permitted to sell shares within period of 2 weeks from the OFS transaction to the employees of such companies and the same shall be considered as a part of the said OFS transaction.
- The promoters may at their discretion offer these shares to employees at the price discovered in the said OFS transaction or at a discount to the price discovered in the said OFS transaction.
- Promoters shall make necessary disclosures in the OFS notice to the exchange including number of shares offered to employees and discount offered if any.
The said Circular of SEBI can be accessed from the following link:SEBI Cir_27.06.2017_ReviewOFS