OFFER FOR SALE..

Offer for Sale (OFS)* is another form of share sale. OFS mechanism facilitates the promoters of an already listed company *Seller* to sell or dilute their existing shareholdings through an exchange based bidding platform to meet the minimum public shareholding requirements in terms of Securities Contracts (Regulation) Rules. Any non-promoter shareholder of eligible companies (top 200 companies by market capitalization) holding at least 10% of share capital may also offer shares through the OFS mechanism.
Except "Seller", all market participants like individuals, mutual funds, foreign portfolio investors (FPIs/FIIs), insurance companies, corporates, other qualified institutional bidders (QIBs), HUFs, NRIs etc. can bid/participate in the OFS process to buy the shares.
The size of the offer shall be a minimum of Rs. 25 crores. However, size of offer can be less than Rs. 25 crores so as to achieve minimum public shareholding in a single tranche. The duration of the offer for sale shall be as per the trading hours of the secondary market and shall not exceed one trading day.
_SEBI has permitted the Stock Exchanges to provide a separate window, i.e. apart from the existing trading system for the normal market segment, to facilitate Promoters of listed companies to dilute/offload their holding in listed companies in a transparent manner with wider participation.

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