PTI New Delhi

With an aim to streamline the processes for public issues, markets regulator Sebi on Thursday proposed giving clarifications on minimum holding period for equity shares in Offer for Sale (OFS) as well as on employee stock options (ESOPs) for founders classified as promoters.

In its consultation paper, the regulator proposed amendments to the ICDR   norms. The proposals, if implemented, would ensure that the rules are clear and consistent, aligning the eligibility for Offer for Sale (OFS) and Minimum Promoter Contribution (MPC) requirements.  The proposals aim to harmonise the treatment of shares obtained through different mechanisms such as compulsory conversion of securities or approved schemes.

On minimum holding period for equity shares in OFS, Sebi has suggested amendments in the rules to clarify that the holding period for both the fully paid-up compulsorily convertible securities and the resulting equity shares should be considered, thereby extending the exemption from the one-year holding period if the shares were obtained through an approved scheme.