The Securities and Exchange Board of India (SEBI) on January 23, 2024, issued the Framework for Offer for Sale of Shares to Employees through the Stock Exchange Mechanism.
This Circular shall come into force on February 22, 2024
The following has been stated namely: -
• It has been decided that the promoters can also offer the shares to employees in OFS through the Stock Exchange Mechanism.
• It states that the procedure for OFS to employees through the Stock Exchange Mechanism is an additional option to the existing procedure of OFS to employees outside the exchange mechanism.
• The detailed framework for the Offer for the Sale of Shares to Employees through the Stock Exchange Mechanism has been attached for reference
• All recognized stock exchanges and clearing corporations are advised to perform the following functions namely: -
(i) Take necessary steps and put in place the necessary systems for implementation of the above.
(ii) make necessary amendments to the relevant bylaws, rules, and regulations, wherever required, for the implementation of the above.
(iii) bring the provisions of this circular to the notice of the market participants (including investors) and disseminate the same on their website.
[Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR12024/6
