Corporate Updates – 28-06-2017


SEBI has issued a Circular regarding Review of Offer for Sale (OFS) of Shares through Stock Exchange Mechanism. In order to streamline the process of OFS with an objective to encourage greater participation by employees, the existing provision with respect to restriction on sale of shares by promoters post OFS is modified. Now, Promoters of eligible companies shall be permitted to sell shares within a period of 2(two) weeks from the OFS transaction to the employees of such companies. The offer to employee shall be considered as a part of the said OFS transaction. The promoters may at their discretion offer these shares to employees at the price discovered in the said OFS transaction or at a discount to the price discovered in the said OFS transaction. Promoters shall make necessary disclosures in the OFS notice to the exchange including number of shares offered to employees and discount offered if any.


NCLT is suppression of its earlier orders, has issued an Order dated 12-06-2017 amending the division of work between Division and Single Bench of NCLT. In continuation of the same, NCLT has clarified that all new matters and pending matters shall be distributed amongst the Benches and shall exercise equal powers for disposing the cases related to the Companies Act, 2013 and Insolvency & Bankruptcy Code, 2016. Further, the cases shall be equally distributed among the Benches on the basis of distribution may be taken as case no. odd & even i.e No. 1 is to be assigned to Bench -I and No. 2 to be assigned to Bench – II and so on. Further, where NCLT has three Benches, then No. 1 is to be assigned to Bench -I; No. 2 to be assigned to Bench – II and No. 3 is to be assigned to Bench – III and so on. The order shall not be app;licable to cases reserved for orders and part heard matters.

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