Sebi may widen scope of OFS route to help promoters monetise shareholding

Relaxation in FPI investment clubbing norms among other proposals likely to be discussed at Sebi's board this week

The Securities and Exchange Board of India (Sebi), the market regulator, is planning changes to the capital-raising framework to help more promoters divest their holdings and encourage start-ups to list. 

According to sources, Sebi is planning to widen the scope of the so-called offer for sale (OFS) route, a share-sale mechanism to help promoters monetise their shareholding.

At present, only the top 200 companies can use the OFS route. Instead, the regulator will allow any company with market capitalisation of more than Rs 10 billion to use this facility.

The move will help about 24 more companies. More importantly, it