Exchange allows brokers to access OFS segment via internet

Move comes after Sebi had issued new guidelines to expand the framework of the OFS segment for sale of shares

Making it easier to buy and sell shares, all trading members are allowed to access the internet enabled book-building platform to tap the Offer for Sale (OFS) route. The move comes after market regulator, Securities and Exchange Board of India (Sebi) had issued new guidelines to expand the framework of the OFS segment for sale of shares. "The exchange has ...now enabled OFS (segment) to all trading members of the exchange on iBBS (Internet Based Book Building System) of the exchange. All trading members are allowed to access this module," BSE said in a circular. "No separate registration or payment of any charges is required currently to access the OFS segment on iBBS," it added. Besides, the National Stock Exchange has issued detailed scheme to govern OFS of shares through the stock exchange mechanism.

The Securities and Exchange Board of India (Sebi), last month, had allowed a larger set of companies and entities, including non-promoters, to use OFS mechanism for selling shares, while providing for discount and reserved quota to retail investors.

Revising its OFS regulations, Sebi had said that the OFS mechanism would now be available to top 200 companies by market capitalisation in any of the last four completed quarters. So far, top-100 companies were allowed to tap this fast-track route, while only promoter shareholders could sell their shares.

Following the changes, any non-promoter shareholder with at least 10 per cent stake in eligible companies would be allowed to offload shares through OFS route.

Sebi had first introduced the OFS mechanism in July 2012 to help listed private companies comply with the minimum 25 per cent public shareholding norm and state-owned firms to meet the requirement of a 10 per cent public float.

In case a non-promoter shareholder offers shares through the OFS mechanism, promoters/promoter group entities of such companies may participate in the OFS to purchase shares.

The offer-for-sale route was introduced in February 2012 as a faster way for promoters to sell shares and has been found to be a very successful mechanism.

More than 100 companies have sold shares through OFS to mop up almost Rs 50,000 crore since it was introduced.