Sebi clarifies off-market sale of unlisted shares to up to 200 buyers not a public issue

The regulator further clarified that contractual rights such as the right of first refusal (ROFR) available to company promoters can be honoured while carrying out such share transfers.

Sebi has stated that off-market transactions involving share sales are distinct from public issues, particularly when current shareholders opt to sell unlisted equity shares privately. A limit of two hundred purchasers per financial year must be adhered to. This clarification…