The Securities and Exchange Board of India revised the process for offer for sale of shares to employees through stock exchanges. A circular issued on Friday said employees are now required to place bids on T+1 (trading plus one) day, but at the previous day's cut-off price.
An OFS allows company promoters to sell their shares in the secondary market.
The market regulator in January put in place the procedure for offering shares to employees via OFS, specifying that employees should bid on T+1 day at the cut-off price of T+1 day.
As per the rule, OFS to employees should be on T+1 day, along with the retail category under a new category called as 'employee'.
The revision will be implemented 30 days after this circular is issued. The change in rule was made in response to input from stakeholders.
In January, SEBI allowed promoters of companies to give shares to their employees under the OFS through the stock exchange mechanism in a bid to ensure ease of compliance. Previously, shares under OFS were offered to the staff outside the stock exchange mechanism.
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