Investors with over 10% stake may get to take the OFS route .
The Securities and Exchange Board of India is likely to allow only those large investors — owning more than 10% stake in top 200 companies by market capitalisation — to sell their stake through the offer-for-sale (OFS) route. The move could be a major relief to private equity funds struggling to exit listed companies but would be restrictive to the ones with small holdings, said analysts. Sebi is likely to issue a circular this week on the eligibility criteria for non-promoter shareholders, framework for offering discount and other risk-management measures, said a person familiar with the development.
"Small shareholders won't be able to use the OFS route as they can sell through the normal trading window," said Prithvi Haldea of New Delhi-based Prime Database. Non-promoter shareholders with significant holding such as private equity, venture capital funds and LIC would be able to sell their stake through this cost and time efficient platform.
The Securities and Exchange Board of India is likely to allow only those large investors — owning more than 10% stake in top 200 companies by market capitalisation — to sell their stake through the offer-for-sale (OFS) route. The move could be a major relief to private equity funds struggling to exit listed companies but would be restrictive to the ones with small holdings, said analysts. Sebi is likely to issue a circular this week on the eligibility criteria for non-promoter shareholders, framework for offering discount and other risk-management measures, said a person familiar with the development.
"Small shareholders won't be able to use the OFS route as they can sell through the normal trading window," said Prithvi Haldea of New Delhi-based Prime Database. Non-promoter shareholders with significant holding such as private equity, venture capital funds and LIC would be able to sell their stake through this cost and time efficient platform.
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