PSUs may get to allot staffer shares after 12 weeks of OFS
According to persons familiar with the development, the government wanted to reserve some shares for employees in the recently-concluded OFS of NMDC, but could not do so as the OFS guidelines have no such provision.
“The issue came up during NMDC's OFS and it was suggested to the ministry of divestment that employees can be allotted shares through spot contracts or even preferential allotment after a stake sale,” said a person privy to the matter. “The issue was taken up by Sebi and we believe that the regulator is not averse to such an idea,” he added.
Sources said while Sebi is not keen on allowing a reserved portion for employees within OFS, it has instead suggested to the government that PSUs can allot shares to its employees through spot contracts or even preferential allotment after the 12-week mandatory cooling period post an OFS is over.
This would be surely welcomed by the large employee community of listed PSUs as the recent stake sales have been done through the OFS mechanism, which is typically aimed at institutional investors. Incidentally, till a few years back, divestment
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