SEBI on Thursday allowed offer for sale (OFS) and rights entitlement transactions during the trading window closure period. Under market norms, listed companies need to use a trading window to monitor transactions by designated persons in a bid to prevent insider trading. The compliance officer is responsible for closing the trading window, in case the designated persons are expected to be in possession of unpublished price sensitive information.
SEBI said: “trading window restrictions shall not apply in respect of OFS and RE transactions carried out in accordance with the framework specified by the Board from time to time.”
