On July 23, 2020, the Securities and Exchange Board of India (“SEBI”) issued a circular allowing Offer for Sale (“OFS”) and Rights Entitlements (“RE”) transactions during trading window closure period (“Circular”).
Clause 4 (3)(b) of Schedule B read with Regulation 9 of the SEBI (Prohibition of Insider Trading) Regulations, 2015 (“PIT Regulations”), inter-alia, states that trading window restrictions shall not apply in respect of transactions mentioned therein or transactions undertaken through such other mechanism as may be specified by SEBI from time to time. The Circular states that in addition to the transactions mentioned in Clause 4 (3)(b) of Schedule B read with Regulation 9 of the PIT Regulations, trading window restrictions shall not apply in respect of OFS and RE transactions carried out in accordance with the framework specified by SEBI from time to time.
Please find a copy of the Circular here.
This update has been contributed by Adity Chaudhury (Partner) and Deeya Ray (Associate).
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