| Amendments to the Guidelines For Offer For Sale Through Stock Exchange Mechanism |
| In an endeavor to make ‘Offer for Sales through Stock Exchange mechanism’ a successful and objective mode for meeting the minimum Public Shareholding norms and thus complying with the requirements of Clause 40 A of the Listing Agreement, SEBI has bought in certain Amendments to its earlier Circular dated 1st February 2012. |
| For a recap, the above mentioned Circular laid the detailed Guidelines needed to be followed by the Companies/ the Promoters/ the Exchanges in case of Offer for Sales through Stock Exchange mechanism’. |
| The gist of the Amendments is as under: |
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Earlier, there was no requisite for the Exchanges to disclose any Indicative Price, but now, they will be required to disclose the same only during the last half an hour of the duration of the Offer for sale & this Indicative Price shall reflect the volume weighted average price of all the bids that have exhausted the quantity offered. |
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Further, SEBI has also clarified as to the contents of the Advertisement needed to be given with reference to Offers for Sale. It has been mandated that contents of the Advertisement shall be the same as the contents of the notice sent to the Stock Exchanges.
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