Author name: Sanjeev

SEBI has issued a circular for the new OFS framework. Learn about the changes to the process and guidelines for the sale of equity shares, REITs, and InvITs through the Offer for Sale mechanism.

Key Points for the New OFS Framework

• The introduction of a comprehensive framework for the Offer for Sale (OFS) of shares by promoters and other shareholders.
• The requirement for sellers to disclose the floor price of shares at least one day before the OFS.
• The option for sellers to offer shares to employees at a discounted price.
• The provision for discounts for retail investors.
• The requirement for a separate trading window for the OFS of shares.
• The reservation of a minimum of 25% of shares for mutual funds and insurance companies and a minimum of 10% for retail investors.
• The calculation of the cut-off price based on all valid bids.
• The option for non-retail investors to carry forward their bids to the next day.
• The imposition of penalties for default in pay-in and the inability to revise allotment prices.
• The issuance of contract notes by brokers to clients.
• The imposition of a cooling-off period of 10 trading days before an OFS can be made again after withdrawal.
• The prohibition of cancellation of an OFS during the bidding period.
• The applicability of the framework to publicly issued and listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

A Comprehensive Look at the New OFS Framework

The Securities and Exchange Board of India (SEBI) has issued a circular outlining a comprehensive framework for the Offer for Sale (OFS) mechanism. The new OFS framework is designed to provide a transparent and efficient process for the sale of securities by promoters and other shareholders of listed companies. The circular defines key terms such as “Seller”, “Retail Investor” and “Cut-off Price” in order to provide clarity on the OFS process.

The definition of “Seller” includes promoters and promoter group entities, as well as other shareholders of a listed company who wish to sell their securities through the OFS mechanism. A “Retail Investor” is defined as an individual investor who places bids for shares of a total value not exceeding ₹ 2 lakhs. “Cut-off Price” is the lowest price at which the entire offer gets sold, determined based on all valid bids.

The new OFS framework also includes details on the timing and method of the OFS process, order placement, risk management, allocation, settlement, and handling of defaults. The definition of these key terms is crucial to ensure a fair and orderly process for the sale of securities through the OFS mechanism.

Eligibility Securities for New OFS Framework

The securities that are eligible for the new OFS framework are equity shares of listed companies and units of publicly issued and listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

Eligible Buyers and Sellers

The eligible sellers under the new OFS framework are the promoters, promoter group entities, and other unitholders of the eligible securities. The eligible buyers under the OFS framework are institutional investors, non-institutional investors, and retail investors.

Size of OFS

The size of the offer shall be a minimum of ₹ 25 Crore. However, the size of the offer can be less than ₹ 25 Crore by the promoter(s) or promoter group entities so as to achieve minimum public shareholding in a single tranche.

Advertisements and Offer Expenses

The issuer must disclose the floor price and the number of shares being offered through the OFS in the advertisement, and the advertisement must be placed in at least two newspapers with nationwide circulation. The expenses for the OFS, including the expenses for the advertisement, must be borne by the issuer and cannot be passed on to the shareholders. The new OFS framework prohibits the issuer or any of its associates from making any payment or providing any benefit to any media entity in relation to the OFS. This is done to ensure that the advertisement and the offer expenses are not inflated and that the interests of investors are protected.

Operational Requirements

The seller(s) will appoint broker(s) for this purpose. The seller’s broker(s) may also undertake transactions on behalf of eligible buyers. Seller shall announce the intention to the sale of shares latest by 5 pm on T-1 days (T day being the day of the OFS) to the stock exchange. Stock exchanges shall inform the market immediately upon receipt of the notice. The stock exchange, however, may allow, on a case-to-case basis based on the request of the seller, the extension of this time up to 6 pm by recording reasons for granting the such extension. In the new OFS framework, the seller(s) shall announce the intention to the sale of shares along with the following information:

• Name of the seller(s) (promoter(s) or promoter group entities or non-promoter shareholders) and the name of the company whose shares are proposed to be sold.
• Name of the stock exchange(s) where the orders shall be placed. In case orders are to be placed on more than one stock exchange, one of them shall be declared as the Designated Stock Exchange (“DSE”).
• Date and time of the opening and closing of the offer.
• Allocation methodology i.e. either on a price priority basis (at multiple clearing prices) or on a proportionate basis (at a single clearing price).
• The number of shares being offered for sale.
• Green Shoe Option: The maximum number of shares that the seller may choose to sell over and above the offer made.
• The name of the seller broker(s) on behalf of the seller(s).
• Conditions, if any, for withdrawal or cancellation of the offer.

Floor Price

In the new OFS framework, the seller shall disclose the floor price latest by 5 pm (or latest by 6 pm, if the extension is granted by the stock exchange) on T-1 day to the stock exchange. Stock exchanges shall ensure that the same is informed to the market immediately. 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 the number of shares offered to employees and the discount offered if any.

Discount for Retail Investors

In the new OFS framework, SEBI says the seller may offer a discount to retail investors. The details of the discount and percentage of reservation for retail investors shall be disclosed upfront in the notice of OFS to the exchange. The discount to retail investors may be offered as follows:

• Multiple Clearing Price OFS i.e. retail investors may be allocated shares at a discount to the cut-off price determined in the retail category, irrespective of the bid price entered by them. Or, retail investors may be allocated shares at a discount to the bid price entered by them.
• Single Clearing Price OFS i.e. retail investors shall be allocated shares at a discount to cut off price determined in the retail category.

In the case of both of the above methodologies, the discounted price which shall be the final allocation price to the retail investors may be below the floor price.

Timelines

The new OFS framework proposes the duration of the OFS shall be as per the trading hours of the secondary market. On the commencement of OFS on T day only non-retail investors shall be permitted to place their bids. The cut-off price shall be determined based on the bids received on T day as per the extant guidelines. The retail investors shall bid on T+1 day. The seller shall make appropriate disclosures in this regard in the OFS notice.

Order Placement

A separate window for the purpose of the sale of shares through OFS shall be created. The following orders shall be valid in the OFS window:

• Orders with 100% of margin paid upfront by institutional investors and non-institutional investors. Such orders can be modified or canceled at any time during trading hours.
• Orders without paying upfront margin by institutional investors only. Such orders cannot be modified or canceled by the investors or stock brokers, except for making upward revisions in the price or quantity.

Cumulative bid quantity shall be made available online to the market throughout the trading session at specific intervals in respect of orders with 100% upfront margin and separately in respect of orders placed without any upfront margin. The indicative price shall be disclosed to the market throughout the trading session for non-retail bids. The indicative price shall be calculated based on all valid bids or orders.

If the shares have a price band in the normal segment, the same shall not apply to the orders placed in the OFS. Stock-specific tick size as per the extant practice in normal trading session shall be made applicable for this window. In the case of shares under OFS, trading in the normal market shall also continue. However, in case of market closure due to the incidence of breach of the ‘Market wide index based circuit filter’, the OFS shall be halted. Non-retail investors shall be allowed to place only limit orders or bids. Multiple orders from a single buyer shall be permitted. On T-Day orders or bids below the floor price shall be rejected.

Order Placement for Retail Investors

Individual retail investors shall have the option to bid in the retail category and the general category (non-retail). However, if the cumulative bid value of such investors exceeds ₹ 2 lakhs, the bids in the retail category shall become ineligible. To make it easier for retail investors to participate in OFS, it would be mandatory for sellers to provide the option to retail investors to place their bids at a cut-off price in addition to placing price bids.

The sellers shall mandatorily announce the floor price on T-1 day to the stock exchange. The exchanges will decide upon the number of shares eligible to be considered as retail bids, based on the floor price declared by the seller. There shall be no indicative price for the retail portion of OFS.

Retail investors may enter a price bid or opt for bidding at the cut-off price. The margin for retail bids placed at the cut-off price shall be at the cut-off price determined based on the bids received on T Day and for price bids at the value of the bid. Bidding by retail investors on T+1 Day shall be based on the cut-off price determined in the non-retail category.

In case of under subscription in the non-retail category, the retail investors shall be allowed to place their bids at floor price on T+1 day. Retail bids below the cut-off price of T day or the floor price, whichever is applicable, shall be rejected. Retail bids at cut-off price shall be allocated on a proportionate basis in case of over-subscription. Any unsubscribed portion of the non-retail category after allotment shall be eligible for allocation in the retail category and vice versa.

Risk Management

Clearing Corporation shall collect a 100% margin in cash from non-institutional investors. In the case of institutional investors who place orders or bids with 100% of the margin upfront, custodian confirmation shall be within trading hours. In the case of institutional investors who place orders without an upfront margin, custodian confirmation shall be as per the existing rules for secondary market transactions. The funds collected shall neither be utilized against any other obligation of the trading member nor co-mingled with other segments.

In respect of bids in the retail category, the clearing corporation shall collect a margin to the extent of 100% of the order value in cash or cash equivalents. Pay-in and pay-out for retail bids shall take place as per normal secondary market transactions. In case of an order or bid modification or cancellation, such funds shall be released or collected on a real-time basis by the clearing corporation.

The seller(s) shall deposit the entire quantity of shares offered for sale including the additional shares disclosed, as pay-in with the designated clearing corporation under the framework of interoperability of clearing corporations prior to the commencement of the offer. No other margin shall be charged to the seller(s).

Allocation

A minimum of 25% of the shares offered shall be reserved for mutual funds and insurance companies, subject to allocation methodology. Any unsubscribed portion thereof shall be available to the other bidders. A minimum of 10% of the offer size shall be reserved for retail investors. The cut-off price i.e. the lowest price at which the entire offer gets sold, shall be determined based on all valid bids. The cut-off price shall be determined separately for bids received in the retail category and for bids received in the non-retail category.

Upon determining the cut-off price, the offer size reserved for retail investors shall be allocated to eligible bids of retail investors. In case of excess demand in the retail category at the cut-off price, the allocation shall be on a proportionate basis. In order to ensure that shares reserved for retail investors do not remain unallocated due to insufficient demand by the retail investors, the bids of non-retail investors shall be allowed to carry forward to T+1 day. Similarly, the unsubscribed portion of the non-retail segment shall be allowed for bidding in the retail segment.

The unsubscribed portion of the shares reserved for retail investors shall be allocated to non-retail bidders (un-allotted bidders on T day who choose to carry forward their bid on T+1 day) on T+1 day at a price equal to cut off price or higher as per the bids. In this regard, an option shall be provided to such non-retail bidders to indicate their willingness to carry forward their bids to T+1 day. If the non-retail bidders choose to carry forward their bids to T+1 day, then, they may be permitted to revise such bids.

Settlement

The allocation and the obligations resulting thereof shall be intimated to the brokers or clearing members on T day. The settlement shall take place on trade for trade basis. For non-institutional orders or bids and for institutional orders with 100% margin, settlement shall take place on T+1 day. In case of orders or bids of institutional investors with no margin, settlement shall be as per the existing rules for secondary market transactions.

Settlement for bids received on T+1 day shall be carried out as per the existing rules for secondary market transactions. Funds collected from the bidders who have not been allocated shares shall be released after the download of the obligation. On the day prior to settlement, to the extent of obligation determined, the designated clearing corporation of the seller broker(s) under the framework of interoperability among clearing corporations shall transfer such number of shares to the other interoperable clearing corporations.

The other interoperable clearing corporation(s) shall transfer funds consideration to the designated clearing corporation on settlement day. Excess shares, if any, shall be returned to the seller broker(s). The direct credit of shares shall be given to the Demat account of the successful bidder provided that such manner of credit is indicated by the broker or bidder.

Handling of Default in Pay-in

In case of default in pay-in by any investor, 10% of the order value shall be charged as a penalty from the investor and collected from the broker. This amount shall be credited to the Investor Protection Fund of the stock exchange. The price at which allotments have been made based on the allocation on T day shall not be revised as a result of any default in pay-in. Seller(s) shall have the option to cancel in full or conclude the offer. Allotment details after settlement shall also be disseminated by the exchange. The Settlement Guarantee Fund shall not be available for OFS through the stock exchange mechanism.

Issuance of Contract Notes

The brokers shall be required to issue contract notes to the client based on the allotment price and quantity in terms of conditions specified by the exchange.

Withdrawal of Offer

The OFS may be withdrawn prior to its proposed opening. In such a case there will be a cooling off period of 10 trading days from the date of withdrawal before an offer is made once again. The stock exchange(s) shall suitably disseminate details of such withdrawal.

Cancellation of Offer

Cancellation of the offer shall not be permitted during the bidding period. If the seller(s) fails to get sufficient demand from non-retail investors at or above the floor price on T day, then the seller may choose to cancel the offer, post bidding, in full (both retail and non-retail) on T day and not proceed with the offer to retail investors on T+1 day. The stock exchange(s) shall suitably disseminate details of such cancellation.

New OFS Framework for REITs and InvITs

OFS for the sale of units of REITs and InvITs by the sponsor(s) or sponsor group entities, and other unitholders shall be permitted only in publicly issued and listed REITs and InvITs. The new OFS framework for REITs and InvITs shall be equivalent to the OFS framework prescribed above.

Also Read:

• Dividend Adjustment of TCS Full Details
• SEBI’s guidelines for handling stock exchange outages
• RBI’s Financial Stability Report December 2022
• Removal of FSL and TORONTPOWER from the FNO
• Guidelines for Net Settlement of Equity and FNO Segments
• Dividend Adjustment of VEDL Full Details

Get all the details on the Dividend Adjustment of TCS, including the date of ex-dividend, record date, cash, and F&O adjustments, and more. Learn how TCS’s dividends will be adjusted in line with SEBI guidelines.

On January 09, 2023, TATA CONSULTANCY SERVICES (TCS) announced that its Board of Directors has approved a third Interim Dividend of ₹ 8 per equity share and a special dividend of ₹ 67 per equity share, representing a total dividend of ₹ 75 per equity share. This is equivalent to a payout of 2.34% of the share price, based on the closing price of ₹ 3211.55 on January 06, 2023. The Ex-date for dividend is January 16, 2023, and the record date for the payment of dividends is January 17, 2023.

SEBI’s Guidelines for Dividend Adjustment in F&O

SEBI guidelines state that companies whose dividends are more than 2% of the closing price on the day before the date of declaration of dividends must adjust the dividends in the futures and options market. In line with these guidelines, TCS dividends will be adjusted in the futures and options market as well as in the cash market.

Dividend Adjustment of TCS in the Cash Market

In the cash market, the last cum-dividend date for TCS is January 13, 2023. Investors who purchase TCS shares on or before this date will receive the dividends directly in their bank accounts.

Dividend Adjustment of TCS the Futures Segment

In the futures market, the value of a TCS futures contract will be adjusted by deducting the dividend amount from the closing price on January 13, 2023. For example, if TCS closes at ₹ 3400 on January 13, 2023, the value of a future contract will be ₹ 3400 x 175 = ₹ 5,95,000. On January 16, 2023, the value of the same contract will be ₹ 3325 x 175 = ₹ 5,81,875. The difference between these two values will be credited to the future buyer’s account and debited from the future seller’s account.

Dividend Adjustment of TCS in the Options Market

In the options market, the dividend amount will be deducted from the strike price (call/put) of the option for ongoing months contracts. This applies to the contracts expiring on January 25, 2023, February 23, 2023, and March 29, 2023. This can be understood through the table given below:

TCS Dividend Adjustment in Options

If you have any other query related to the dividend adjustment of TCS then you can ask us by commenting below and get your doubt cleared. If you found this information beneficial then share it.

Read More:

• Dividend Adjustment of ONGC Full Details
• SEBI’s guidelines for handling stock exchange outages
• RBI’s Financial Stability Report December 2022
• SEBI’s New OFS Framework
• Removal of FSL and TORONTPOWER from the FNO

The Investor Risk Reduction Access (IRRA platform) is a contingency service introduced by the SEBI to address the issue of disruption of trading services provided by Trading Members (TMs).

Key Features and Functions of the Investor Risk Reduction Access (IRRA platform):

• The IRRA platform is a contingency service developed by the SEBI to provide investors with an avenue to square off/close their open positions and/or cancel pending orders in the event of disruption of trading services provided by a Trading Member (TM).
• The IRRA platform will be jointly managed by the stock exchanges and will be available across multiple segments and exchanges.
• TMs can request the enablement of the IRRA service in case of technical glitches, and the stock exchanges will also monitor parameters such as connectivity and order flow to initiate the enablement of the service if needed.
• Investors will be able to access the IRRA platform through a secure login system using their Unique Client Code (UCC) or PAN number and will be authorized through a One Time Password (OTP).
• The IRRA platform will also provide TMs with access to an Admin Terminal, through which they can monitor the actions of investors and carry out actions on their instructions.
• The TM will continue to be responsible for all activities on the IRRA platform, including settlement and margin requirements.
• In case of reverse migration to the TM’s systems, the IRRA platform will be deactivated, and all pending orders and open positions will be migrated back to the TM’s systems.

Overview of the IRRA Platform

The Investor Risk Reduction Access (IRRA) platform is a contingency service developed by the Securities and Exchange Board of India (SEBI) to address the issue of disruption of trading services provided by Trading Members (TMs). In recent times, with the increasing dependence on technology in the securities market, there have been instances of glitches in TMs’ systems that have led to the disruption of trading services and investor complaints. In such situations, investors with open positions may not have an avenue to close their positions, particularly if markets are volatile.

To address this issue, SEBI has developed the IRRA platform, which will be jointly managed by the stock exchanges. The IRRA platform will provide investors with an opportunity to square off/close their open positions and/or cancel pending orders in the event of disruption of trading services provided by a TM. The IRRA platform will be available across multiple segments and exchanges, and TMs and investors will be able to access it through a secure login system. The IRRA platform will also provide TMs with access to an Admin Terminal, through which they can monitor the actions of investors and carry out actions on their instructions.

The IRRA platform is an important resource for mitigating risk in the event of disruption of trading services and ensuring the continuity of trading for investors. It is designed to provide a backup solution in case the TM’s own business continuity plans are unable to prevent disruption, such as in cases of cyber-attacks or the inability to move to a Disaster Recovery Site (DRS) within the stipulated time. The IRRA platform will be activated upon request by the TM or suo moto by the stock exchanges if needed based on monitoring of parameters such as connectivity, order flow, and social media posts.

Enabling the IRRA Service

Trading Members (TMs) can request the enablement of the Investor Risk Reduction Access (IRRA) service in the event of technical glitches that lead to the disruption of trading services. TMs can make such a request as per the procedures specified by the stock exchanges from time to time. The IRRA service will be enabled on receipt of such a request.

In addition to requests made by TMs, the stock exchanges will also monitor parameters such as connectivity, order flow, and social media posts to suo moto initiate the enablement of the IRRA service if needed. This service will be enabled by the exchanges suo moto only in case of disruption of trading services of the TM across all exchanges where the TM is a member. In cases of disruption of trading services of the TM with one or some of the exchanges where the TM is a member, the TM may request the enablement of the service, in which case the TM will use the service for all exchanges.

It is important to note that the IRRA service will only be activated in cases of disruption of trading services provided by the TM. In the event that the IRRA service is activated, all investors of the TM will be informed by the exchange through email/SMS and a public notice on the exchange’s website. The TM will also be required to communicate the availability of the service by displaying it on their own website.

Accessing the IRRA Platform

Once the Investor Risk Reduction Access (IRRA) service is enabled, investors of the Trading Member (TM) can log in to the service using either their Unique Client Code (UCC) or their PAN number. They will then be authorized to access the IRRA platform through a One Time Password (OTP) that will be sent to their registered mobile numbers and email IDs.

Once successfully authorized, investors will be able to square off/close their open positions and/or cancel pending orders across segments and exchanges. The IRRA platform will not permit any actions that increase the risk of the investor.

In addition to investor access, the IRRA platform will also provide the TM with access to an Admin Terminal. Through this terminal, the TM can monitor the actions of investors and carry out actions on their instructions. The TM will be required to maintain evidence of such instructions in the form specified by SEBI/stock exchanges from time to time. In the event that the IRRA service was enabled due to a cyber-attack, the Admin Terminal will be on a network other than the one subjected to the attack in order to protect other critical infrastructure.

IRRA Platform is not a Replacement for Normal Trading

It is important to note that the IRRA platform is intended to provide a contingency service in the event of disruption of trading services provided by the TM. It is not intended to replace the normal trading systems and processes of the TM, and all open positions and pending orders will be migrated back to the TM’s systems once the IRRA service is deactivated.

TM Responsibility on the IRRA Platform

The Trading Member (TM) remains responsible for all activities on the Investor Risk Reduction Access (IRRA) platform, including settlement and margin requirements. This means that the TM is responsible for ensuring that all obligations related to trades executed through the IRRA platform are met.

Reverse Migration to TM Systems

In the event that the Investor Risk Reduction Access (IRRA) service is deactivated, all pending orders and open positions will be migrated back to the Trading Member’s (TM’s) systems. The stock exchanges will design a detailed plan for the reverse migration of such orders and positions, taking into consideration the various scenarios that may arise.

The reverse migration process will be initiated by the stock exchanges on receipt of a request from the TM, or suo moto in cases where the IRRA service was enabled due to a cyber-attack or other disruptive event that has been resolved. The TM will be required to confirm the receipt of all orders and positions that have been migrated back to their systems.

It is important to note that the reverse migration process is a critical aspect of the IRRA service and must be handled carefully to ensure the continuity of trading and minimize risk to investors. The stock exchanges and the TM will be responsible for ensuring the smooth and timely execution of the reverse migration process.

Conclusion: The Importance of the IRRA Platform

The IRRA platform is an important resource for mitigating risk in the event of disruption of trading services and ensuring the continuity of trading for investors. It is designed to provide a backup solution in case the TM’s own business continuity plans are unable to prevent disruption, such as in cases of cyber-attacks or the inability to move to a Disaster Recovery Site within the stipulated time. The IRRA platform is an essential tool for ensuring the smooth functioning of the securities market and protecting the interests of investors.

Also Read:

• RBI Report: Double Digit Growth for Banks in FY23
• Shriram Finance Declared an Interim Dividend of 150%
• Amendments to the SEBI Buy-back of Securities Regulations, 2018
• SEBI’s guidelines for handling stock exchange outages
• Dividend adjustment of TCS

Shriram Finance declared an interim dividend of ₹ 15 per equity share for the financial year 2022-23 on 24 December 2022. The board also approves the raising of funds.

Shriram Finance Declared an Interim Dividend

Shriram Transport Finance Company and Shriram City Union Finance have recently merged to form Shriram Finance Limited, a large retail non-banking financial company (NBFC) in India. SHRIRAMFIN informed exchanges on December 24, 2022, that the board of directors of the company made several decisions. The board declared an interim dividend of 150% (equivalent to ₹15 per equity share of face value 10 INR each) for the financial year 2022-23. The dividend will be paid to eligible shareholders on or after January 18, 2023, after the record date of Wednesday, January 4, 2023.

Fund Raising Plans of 35000 Crores

The board of Shriram Finance Limited also reviewed and approved higher amounts for resource mobilization, including the issuance of redeemable non-convertible debentures(NCD)/subordinated debentures and bonds, in tranches or any other methods of borrowing in onshore/offshore market for the purpose of the business of the company to fund the increased credit demand consequent upon the merger of former Shriram City Union Finance Limited into the company and approved the issuance of these securities up to 35,000 crores INR on a private placement basis.

Shareholder Approval for the Appointment on Board

Along with Shriram Finance declaring an interim dividend the company additionally, approved a postal ballot notice seeking shareholder approval for the appointment of new independent directors, the appointment of a new managing director and CEO, the re-designation of the vice chairman and managing director as executive vice chairman, the payment/revision of remuneration to whole-time directors, the issuance of non-convertible debentures on a private placement basis, and the creation of security in connection with borrowings made by the board for the purpose of the company’s business.

Also Read:

• Amendments to the SEBI Buy-back of Securities
• Margin Trading with ETF
• Net Settlement of Cash and FO Segment Upon Expiry
• RBI Report: Double Digit Growth for Banks in FY23

On 20th Dec 2022, the proposed amendments to the SEBI Buy-back of Securities Regulations, 2018, including a number of changes to the buyback process in India.

These changes are intended to streamline the buyback process, create a level playing field for investors, and promote ease of doing business. It is important for companies to carefully consider the implications of buyback, as it can affect the company’s capital structure and shareholder value. Companies should also ensure compliance with relevant regulations and laws when conducting a buyback.

Amendments Proposed by SEBI for Buy-back of Securities

• Phasing out the buyback through the stock exchange route in a gradual manner.
• Increasing the minimum utilization of the amount earmarked for buyback through the stock exchange route from 50% to 75%.
• Creating a separate window on stock exchanges for undertaking buybacks until buyback through the stock exchange is permitted.

Buy-back of Securities Through Tender Offer Route

• Reducing the timeline for completion of the buyback by 18 days.
• Allowing for upward revision of the buyback price until one working day prior to the record date.
• Making it mandatory to place relevant advertisements and documents related to the buyback on the websites of the stock exchange, merchant banker, and the company.

Also Read:

• Margin Trading with ETF
• SEBI: Net Settlement of Cash and FO Segment Upon Expiry
• T1 Settlement in F&O
• Shriram Finance Declared an Interim Dividend
• RBI Report: Double Digit Growth for Banks in FY23

SEBI: Inclusion of Equity Exchange Traded Funds as list of eligible securities under Margin Trading Facility. अब आप Margin Trading with ETF कर सकते हैं।

Margin Trading with ETF

सेबी ने 30 नवंबर 2022 को सर्कुलर जारी किया जिसके अनुसार वे इक्विटी ETF (Exchange Traded Fund) जोकि ‘Group I security’ में वर्गीकृत हैं उनको Margin Trading Facilty (MTF) के लिए इस्तेमाल किया जा सकता है। इस सुविधा का लाभ आप 31 दिसंबर 2022 से उठा पाएंगे। सेबी की ‘Group I security’ की परिभाषा के अनुसार, उस सिक्योरिटी में पिछले 6 महीने में 80% दिनों में ट्रेड हुआ हो और उनमें Impact Cost (1 लाख का buy/sell का ट्रेड करने में क़ीमत पर पड़ने वाला फर्क) 1% से कम हो।

SEBI ने जून 13, 2017 के Circular No. CIR/MRD/DP/54/2017 में MFT के लिए व्यापक ढांचा जारी किया था। उसके बाद अगस्त 1, 2017 के Circular No. CIR/MRD/DP/86/2017 ब्रोकर MFT के लिए किस स्रोत से धन का इंतजाम कर सकते हैं, उसके बारे में बताया था। अब सेबी ने Margin Trading with ETF की अनुमति दे दी है।

Rules of MFT

MFT के लिए दिए गए ETF पर कम से कम 7.5% haircut के रुप में रखा जायेगा। जो ETF आप मार्जिन फंडिंग के लिए देंगे, उस  ETF को और जो शेयर या ETF आप इस फंडिंग अमाउंट से खरीदेंगे उन दोनों को अलग रखा जाएगा। अगर आपके द्वारा दिए गए ETF की कीमत बढ़ती है, तो आपको उतनी अतिरिक्त फंडिंग अमाउंट मिल जाएगी। किन्तु आपके द्वारा फंडिंग अमाउंट से खरीदे हुए शेयर या ETF की कीमत बढ़ने पर आपको अतिरिक्त फंडिंग नहीं मिलेगी।

उदाहरण के लिए आपने 1 लाख रूपये का ETF ब्रोकर के पास जमा करवाया। हेअरकट के बाद उसकी कीमत 92.5 हजार रूपये होगी। आपने 92.5 हजार रूपये का ETF और खरीद लिया। मान लीजिए की इस ETF की कीमत 20% की बढ़ोतरी हो जाती है, यानि 1.2 लाख रूपये हो गई। आपको अतिरिक्त 20 हजार रूपये में से 1500 रूपये हेअरकट कम करके 18500 रूपये की अतिरिक्त फंडिंग मिल जाएगी। आपके द्वारा खरीदे गए MFT वाले 92.5 हजार रूपये के ETF की कीमत भी बढ़ गई है किन्तु आपको MFT में खरीदे गए ETF पर अतिरिक्त फंडिंग नहीं मिलेगी।

Be Careful While Using MFT

Margin Trading with ETF, करते समय ध्यान दें कि आपके द्वारा MFT के लिए दिए गए ETF या स्टॉक की कीमत अगर कम हो जाती है तो आपको उतना अतिरिक्त अमाउंट ब्रोकर के पास जमा करवाना पड़ेगा।

उदाहरण के लिए आपने जो 1 लाख रूपये का ETF ब्रोकर के पास जमा करवाया। हेअरकट के बाद उसकी कीमत 92.5 हजार रूपये है। आपने 92.5 हजार रूपये का ETF और खरीद लिया। मान लीजिए की इस ETF की कीमत 20% कम हो जाती है यानि 80 हजार रूपये रह गई। आपको अतिरिक्त 20 हजार रूपये जमा करवाने होंगे।

List of ETFs for MFT

यह जानना भी जरूरी है कि कौन से ETF हैं, जो ‘Group I security’ की परिभाषा में आते हैं। दुर्भाग्यवश सिर्फ एक ETF है, जिस पर की Margin Trading with ETF संभव है। उस ETF का नाम है, Nippon India ETF Nifty 50 BeES (NIFTYBEES). इसके अतिरिक्त, कोई भी ETF इस श्रेणी में शामिल नहीं है। भविष्य में, हो सकता है कि कुछ और ETF इस श्रेणी में शामिल हों, जिन पर आप Margin Trading कर पाएं।

Margin trading with ETF से संबंधित अगर कोई अन्य जानकारी चाहिए तो कमेंट करके हमें बताएं।

अन्य पढ़ें:

• Net Settlement of Cash and FO Segment Upon Expiry
• T1 Settlement in F&O
• NSE Revises Nifty Index Methodology for Merger
• Dividend Adjustment of ONGC Full Details
• Dividend Adjustment of PETRONET Full Details
• Mesalamine ER Capsules: Alembic Receives US FDA Approval
• Amendments to the SEBI Buy-back of Securities
• Shriram Finance Declared an Interim Dividend

सेबी ने फ्यूचर एंड ऑप्शन में रिटेल शार्ट सेलर की मुश्किलें आसान करने के लिए Net Settlement of Cash and FO की व्यवस्था की। इस नए प्रबंध का मतलब आज हम समझेंगे।

Net Settlement of Cash and FO: From March 2023

सेबी फिजिकल सेटलमेंट का नया नियम मार्च 2023 की एक्सपायरी से ला रही है। इस नियम के अनुसार, अगर आपका F&O का ट्रेडिंग मेंबर (TM) और कैश सेगमेंट का क्लीयरिंग मेंबर (CM) एक ही है तो, अब फिजिकल सेटलमेंट Net basis पर होगा। अभी तक ये सेटलमेंट अलग अलग होती है। यानि, शार्ट पोजीशन की डिलीवरी देने के लिए जो शेयर आप का ब्रोकर ऑक्शन में बाजार से खरीदता है और जो F&O में आप डिलीवरी देते हैं, वे दोनों सेटलमेंट अलग होती है। अब इन दोनों को आपस में नेट ऑफ किया जायेगा। इस नियम को अनुसार, रिटेल निवेशकों को STT और Stamp Duty पुराने नियमों के अनुसार ही देनी होगी अर्थात् कैश और F&O की अलग अलग।

Net Settlement of Cash and FO: Not for Institutional Investors

ये Netting of settlements सिर्फ रिटेल निवेशकों के लिए है। इसका फायदा Institutional Investors जिनमें कि FPI शामिल हैं नहीं उठा पाएंगे।

What is Physical Settlement

नवंबर 2019 से वायदा बाजार की एक्सपायरी से स्टॉक डेरिवेटिव पर फिजिकल सेटलमेंट लागू है। फिजिकल सेटलमेंट का मतलब है कि फ्यूचर एंड ऑप्शन की एक्सपायरी के दिन वे कॉन्ट्रैक्ट जिनको खरीद/बेच कर खत्म नहीं किया जाता, उनका सेटलमेंट नकद की जगह डिलीवरी से होगा। इसका मतलब अगर आपके पास किसी शेयर की F&O में एक्सपायरी के बाद ओपन पोजीशन है, तो वह डिलीवरी में सेटल होगी।

Physical Settlement in Stock Futures

अगर आपने कोई फ्यूचर खरीद रखा है तो आपको उस शेयर के लोट साइज के बराबर शेयरों की डिलीवरी मिलेगी। आपको उस शेयर के एक्सपायरी वाले दिन के बंद भाव से लोट साइज को गुना करने के बाद पेमेंट देनी होगी। अगर किसी ने फ्यूचर बेच रखा है, तो उसे लोट साइज के बराबर शेयरों की डिलीवरी देनी होगी। डिलीवरी के बदले उसको पेमेंट मिल जायेगा।

Physical Settlement in Stock Options

ऑप्शन में ये मामला थोड़ा अलग है। ऑप्शन में, सिर्फ इन द मनी (ITM) कॉन्ट्रैक्ट डिलीवरी से सेटल होंगे। ऑप्शन की लॉन्ग पोजीशन और शार्ट पोजीशन का अलग अलग मतलब होता है। अगर किसी ने ITM कॉल ऑप्शन खरीद रखा है या ITM पुट ऑप्शन बेच रखा है तो यह लॉन्ग पोजीशन होगी। इस स्थिति में उसको उस स्टॉक की डिलीवरी मिलेगी। अगर किसी ने ITM पुट ऑप्शन खरीद रखा है या ITM कॉल ऑप्शन बेच रखा है तो यह शार्ट पोजीशन होगी। इस स्थिति में उसे स्टॉक की डिलीवरी देनी होगी।

Net Settlement of Cash and FO: No Change for Long Positions

सेबी के इस नए नियम का फिजिकल सेट्लमेंट की लॉन्ग पोजीशन पर कोई फर्क नहीं पड़ेगा। लॉन्ग पोजीशन वाले को स्टॉक की डिलीवरी मिलेगी और उन शेयरों का भुगतान करना होगा।

Net Settlement of Cash and FO: Old Rule for Short Seller

शार्ट पोजीशन वालों को इस नए नियम का फायदा होगा। अगर किसी की शार्ट पोजीशन एक्सपायरी वाले दिन रह जाती है और उसके पास देने के लिए डिलीवरी नहीं है, तो उसे उन शेयरों को बाजार से खरीद कर देना पड़ता है। अभी तक जो शेयर वह बाजार से खरीदता है और जो डिलीवरी उसको फिजिकल सेट्लमेंट में देनी होती है, ये दोनों सौदे अलग अलग सेटल होते हैं। यानि शार्ट सेलर बाजार से जो शेयर खरीदेगा, उसका भुगतान करेगा और डिलीवरी उसके डीमैट अकाउंट में आएगी। उसके बाद ये शेयर F&O में डिलीवर करेगा और भुगतान प्राप्त करेगा। इस बीच में, उसको कैश में और F&O में दोनों जगह मार्जिन भी देना होता है।

Net Settlement of Cash and FO: New Rule for Short Seller

अब नए नियमों के हिसाब से इन दोनों सौदों को आपस में नेट ऑफ किया जायेगा से तात्पर्य अब शेयर खरीदने के लिए पेमेंट न करके, सिर्फ दोनो के भाव के अंतर का ही भुगतान करना होगा। उदाहरण के लिए अगर आपने कोई स्टॉक फ्यूचर बेच रखा है और एक्सपायरी वाले दिन जिसका भाव 105 रुपये सेटल हुआ है। आपको बाजार से वे शेयर 106 रुपये में मिलता है तो आपको सिर्फ 1 रूपये को लोट साइज से गुना कर के भुगतान करना होगा। जबकि पुराने नियमों के हिसाब से आपको 106x लोट साइज का भुगतान करना होता है और 105x लोट साइज से आपको अलग से भुगतान मिलता है।

Net Settlement of Cash and FO: Benefit of New Rules

नए नियम के अनुसार शेयर खरीदने का मार्जिन और भुगतान दोनों ही नहीं करने पड़ेंगे, जिससे छोटे निवेशकों को फायदा होगा।

अन्य पढ़ें:

• T1 Settlement in F&O 
• NSE Revises Nifty Index Methodology for Merger
• Dividend Adjustment of ONGC Full Details
• Margin Trading with ETF
• Amendments to the SEBI Buy-back of Securities
• Shriram Finance Declared an Interim Dividend