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The top 100 companies by market capitalisation in any of the last four completed quarters are now eligible to sell promoter stake using offer–for–sale (OFS) route.
Earlier, the eligibility norm was based on average market capitalisation of the last completed quarter. Last year, SEBI brought in these guidelines to enable promoters to sell their stake and comply with the minimum public shareholding norms of 25 per cent by June 2013.
Making a slew of changes in OFS guidelines, SEBI said that indicative price is the volume weighted average price of all the valid bids. Earlier, confirmed bids were also considered.
Prior to the current changes, both placing of orders and funds on the exchange system used to take place during trading hours. Now, orders can be placed during market hours.
SEBI has scrapped the earlier requirement of custodial confirmation of institutional bids with available funds latest by half an hour post close of session.
Other changes, include permitting upward revision in the price or quantity of the orders of institutional investors not bringing in 100 per cent upfront margin; disclosure of indicative price throughout the trading session instead of the erstwhile last 60 minutes; settlement as per existing secondary market settlement for institutional investors bidding with no margin.
raghavendrarao.k@thehindu.co.in
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