Sebi tweaks famework for OFS format for employees through stocks

SEBI has updated the Offer for Sale (OFS) process for employee share purchases via stock exchanges. Effective 30 days from June 14, employees must place bids on T+1 day at the previous day's valuation. \r

Initially, SEBI issued OFS guidelines in October 2023 and January 2024, allowing company promoters to offer shares to employees through the stock exchange for easier compliance. Employees must pay 100% of the order value upfront in cash, with a bid cap of ₹5 lakh. Each employee can be allotted up to ₹2 lakh in shares. \r

If the employee portion is undersubscribed, the excess can be reallocated proportionately, ensuring no employee receives shares worth over ₹5 lakh.