Dear Sir\Madam
The Securities and Exchange Board of India (SEBI) has issued circular No. SEBI/HO/MRD/MRD -PoD-3/P/CIR/2024/6 dated January 23, 2024, regarding framework for Offer for Sale (OFS) of Shares to Employees through Stock Exchange Mechanism.
SEBI vide Master Circular No. SEBI/HO/MRD2/PoD-2/CIR/P/2023/171 dated October 16, 2023, at paragraph 19 of Chapter 1 has specified the comprehensive framework on Offer for Sale (OFS) of shares through stock exchange mechanism. Under the said framework, the relevant provisions regarding offering of shares to employees by the promoters of the company have been prescribed.
In order to enhance efficiency, ease of compliance and reduce cost, based on deliberations in the Secondary Market Advisory Committee of SEBI and discussions with various stake holders, it has been decided that the promoters can also offer the shares to employees in OFS through the Stock Exchange Mechanism.
The provisions of this circular shall come into effect from 30th day of issuance of this circular.
The aforesaid circular is attached for reference.
All Listed companies are requested to take note and comply accordingly.
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Ashok kumar Singh
DGM-Listing Compliance
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Shyam Bhagirath
Manager-Listing Compliance
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