The Securities and Exchange Board of India on Tuesday allowed promoters to offer shares to employees in an offer-for-sale through stock exchanges. This is in addition to the existing process of offering shares to employees outside the exchange mechanism.
OFS to employees shall be on T+1 day along with the retail category under a new category called “Employee.”
For employee OFS, a certain number of shares shall be reserved for the employees. Bidding shall be allowed during trading hours on T+1 day only.
The floor price of the retail category will be disclosed to the participants under the “Employee” category. Employees shall place bids only at the cut-off price of T+1 day. The allotment price shall be based on the cut-off of the retail category, subject to discount, if any.
The maximum bid amount shall be ₹5 lakh. Each employee is eligible for an allotment of equity shares up to ₹2 lakh. The unsubscribed portion may be allotted to those whose bids exceed ₹2 lakh on a proportionate basis.
The employees shall pay upfront the margin to the extent of 100 per cent of the order value in cash or cash equivalents.