Sebi clarifies on offer for sale

The Securities and Exchange Board of India (Sebi) said on Monday any advertisement given by companies going for offer for sale through the stock exchange mechanism should be restricted to such details of the offer that is given to the stock exchange in this regard. "It is clarified that the contents of the advertisement, if any, to be issued ....shall be restricted to the contents of the notice as given to the stock exchange," Sebi said in a circular. The contents of the stock exchange announcement are laid down in an earlier circular. Accordingly, sellers shall announce the intention of sale of shares at least one clear trading day prior to the opening of offer. This announcement should clearly contain details such as date and time of the opening and closing of the offer, allocation methodology i.e. either on a price priority (multiple clearing prices) basis or on a proportionate basis at a single clearing price, number of shares being offered for sale and floor price.