The BSE has issued a new set of guidelines for bidding in the Offer for Sale (OFS) segment, reducing advance notice period to one day and allowing retail investors to place their bids a day later. This would help check concerted bear hammering on PSE counters before their OFS is made.
Government has been demanding from Sebi that the advance notice should be allowed till evening of the day before OFS, as the share prices of many state-owned companies on the disinvestment list get hammered down due to longer notice.
The government is far behind its disinvestment target of Rs 69,500 crore set for the current fiscal and is not likely to meet it.
Currently, listed companies need to give the OFS notice two banking days in advance, while the bids need to be placed by retail as well as non-retail investors on a single day during the market hours.
Under the new norms, retail investors would place their bids a day later while the companies would be allowed to notify the stock exchanges about their intention for sale of shares latest by 5 pm a day before the day of the OFS.