Finance Ministry has asked the market regulator Securities and Exchange Board of India (SEBI) to consider the proposal of giving retail investors two days to buy shares which are being divested in an offer for sale (OFS) against a single day available to them at present, in order to attract more participation from retail investors.
The government could also explore the option of increasing the trading hours for retail investors on the day of an issue. The main aim is that the government’s holding should pass on to the public and not be limited only to a few institutional investors.
Currently an issue is opened for a day for both retail and institutional investors where the portion of shares is reserved for retail investors whose bids don’t exceed Rs 2 lakh in value. Apart from this, retail investors are allowed to buy the shares at a discount.
Earlier this year, SEBI had partially agreed to the suggestion of Finance Ministry and allowed the notice period for disinvestment to include one banking day in addition to a trading day to contain speculation in shares of a company coming out with an offer for sale.