BSE, NSE to conduct mock trading session in OFS segment

Session will familiarise participants with carry forward available to unallocated bids of non-retail investors to T+1 day

Leading stock exchanges BSE and NSE will conduct a mock trading session tomorrow in the Offer for Sale segment following changes introduced by Sebi, whereby OFS window has been extended for one day.

The session will be conducted to familiarise the participants with carry forward facility available to the unallocated bids of non-retail investors to T+1 day. T refers to the trading day of the OFS.

The move comes after BSE and NSE issued a new set of guidelines for bidding in the OFS segment.

"Trading members and custodians are...Informed that the exchange proposes to conduct mock trading session...For OFS module on February 22, 2016," BSE said in a circular.

Separately, NSE said that "all the eligible trading members of the capital Market segment can participate in mock session...Which shall be available from February 22, 2016 at 1000 hours onwards."

Last week, markets regulator Sebi agreed to the government's suggestion for cutting advance notice period for OFS to one day and allowed retail investors to place their bids a day later for such share sales.

Government had been demanding that the advance notice should be allowed till evening of the day before OFS, as the share prices of many state-owned companies on the disinvestment list get hammered down due to longer notice.

The government is far behind its disinvestment target of Rs 69,500 crore set for the current fiscal and is not likely to meet it.

Currently, listed companies need to give the OFS notice two banking days in advance, while the bids need to be placed by retail as well as non-retail investors on a single day during the market hours.

Under the new norms, retail investors would place their bids a day later while the companies would be allowed to notify the stock exchanges about their intention for sale of shares latest by 5 pm a day before the day of the OFS.

Stock exchanges will have to inform the market immediately upon receipt of such notice.

The new norms are expected to encourage greater participation from investors, especially retail.