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FAQs for e-OFS


Background:

Offer for Sale (OFS) mechanism has been introduced to facilitate promoters to dilute/offload their holding in listed companies. A separate window is being provided by the Exchange for the same.

Offer for sale (OFS) is a method used to reduce & reverse the concentration of stock ownership, making it more scattered and dispersed in the hands of many shareholders. It is a mechanism to transfer and distribute ownership of a company from the promoters/institutions to other investors in the stock market.

  • Promoter(s)/ promoter group entities of companies that are eligible for trading and are required to increase public shareholding to meet the minimum public shareholding requirements
  • All promoters/promoter group entities of top 100 companies by market capitalization in any of the last four completed quarters, market capitalization being calculated as average market capitalization in a quarter.

NSE e-OFS platform was available for placing orders in OFS w.e.f. Feb 20, 2020

No, the old NEAT based OFS platform shall be discontinued w.e.f. Feb 19, 2020 (end of business hours)

For information regarding date & timings of the OFS, you may refer to the circular issued by the exchange for that respective OFS.

No, this facility is only available to trading members of the exchange. All Investors can participate for placing bids through their registered Trading members.

The following are list of investor categories registered with NSE that can participate in OFS.

  • Retail Investors
  • NRIs
  • Foreign Portfolio Investors
  • Qualified Institutional Buyers
  • Corporates
  • Mutual Funds
  • Insurance Companies
  • Trusts & HUF
  1. An email shall be sent with Admin User credentials & password link on the email is as provided by the member.
  2. Member shall receive password & establish successful login after providing OTP received on Mobile/E-mail
  3. Members are requested to Login into Web based system using Admin User & thereafter create branch & user ids to place orders on NSE e-OFS platform.

All trading members registered with the exchange can access this platform.

Its architecture provides scalable operation and flexible deployment options while ensuring data integrity for improved performance. e-OFS is and web based platform as compared to the earlier NEAT system, so ease of accessibility.

There shall be no change in the existing process, provisions and guidelines of OFS segment. Further help file for OFS platform is also available on the following path:

https://eofs.nseindia.com > Login > Help Menu

Details of the OFS are declared by the seller to the exchange one day prior to the OFS. The details include the following information:

  • Name of company issuing OFS
  • Date & Time of the opening & closing of the offer
  • Name of the exchange, it can be NSE, BSE or both. However one will designated Stock Exchange.
  • Number of shares offered for sale
  • Name of the broker on behalf of the seller
  • Allocation methodology: Price priority or proportionate basis
  • Any other information as provided by the seller along with the terms & conditions

The announcement will be disseminated by the Exchange on its website immediately to inform the market

Mock sessions are conducted only when a new functionality is released for testing to the registered members of the exchange.

Existing APIs for NNF shall be discontinued and only Web API shall be available.

The e-OFS web API document is available on the following link.

https://www.nseindia.com/trade/platform-services-neat-trading-system-protocols

Home > Trade > Platforms & Services > NSE Trading Technology > Trading Protocols

Member connecting via API are requested to create users and enable API access post receipt of Admin user credentials. Members are requested to provide Admin user creation request by providing the below details on ENIT portal on the path:

Membership > Enablement > eOFS

Member has to one time provide request on ENIT for Admin creation. Subsequently Admin has facility to create himself as many user and branches as per their requirement, unlike earlier in NEAT which was request based (Which used to take 24 hours)

Cut-Off price is the lowest price at which an investor is allocated shares during an OFS. This way, the investor can simply apply for shares at the cut-off price without worrying about price discovery at the time of bidding.

Floor price is the minimum price at which seller wants to sell his shares. However, this information is not declared to the market & is informed to the designated exchange one day prior to the day of OFS after the closure of the trading hours.

Shares are allotted by the designated stock exchange to the trading members on the basis of allocation methodology i.e. Proportionate basis or Price Time Priority basis

Yes the issuer of the OFS can withdraw his offer before the opening of the OFS

Yes, Circular number NSE/CMTR/43592 dated Feb 19, 2020 can be referred to which explains the revised operating guidelines & terms & conditions of OFS by NSEIL.

You can reach the Member Service Department at 1800 266 0050 (Option 1) or email us at msm@nse.co.in


Download FAQ’S on e-OFS (.pdf)

Disclaimer:

“This document/FAQ has been drafted in order to ease Member’s/reader’s understanding of the subject matter. The information and/ or content (collectively ‘Information’) provided herein is general information only and NSE has issued detailed circulars to that effect from time to time, While reasonable care has been exercised to ensure that the Information is adequate and reliable, no representation is made by NSE as to its accuracy or completeness and NSE, its affiliates and subsidiaries accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. The readers are expected to undertake their own diligence and are advised not to solely rely on this document. Any such reliance shall be at the reader’s own risk. Nothing stated herein shall bind NSE, in any manner whatsoever.”

Updated on: 01/07/2020
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