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BSE mandates that trading members strengthen internal controls for Offer for Sale (OFS) transactions. Members must apply capital market terminal access and risk management controls to all OFS bidding terminals. Only personnel authorized for capital market trading terminals may place OFS bids for clients. Members must register these user details with the Exchange. Members must review all institutional orders without upfront margin during the bidding window. Members must maintain audit trails and records for all OFS activities. Members must perform periodic reviews of their OFS processes to ensure operational resilience and regulatory compliance.
What you must do
Who is affected
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[Image omitted. See the official document.]
| Notice No. | 20260727-11 |
| Notice Date | 27 Jul 2026 |
| Category | Compliance |
| Segment | General |
| Department | DOSS |
| Subject | Supervisory Oversight and Review of Offer for Sale (OFS) Process |
| Attachments | No Attachment |
[Image omitted. See the official document.]
During the review of market oversight activities, it has been noticed that there are certain shortcomings in the process relating to the placement of Offer for Sale (OFS) orders specifically for large-value and institutional orders.
In order to strengthen operational controls, reduce risks associated with order placement and enhance investor protection, trading members are advised to review and strengthen their internal procedures and control frameworks governing OFS transactions.
Further, trading members are advised to ensure the following:
Location and Access Controls: All terminals used for OFS bidding shall be subject to the same access controls, monitoring mechanisms, and risk management controls as implemented by the member for terminals used in the capital market segment.
Authorized Personnel: Trading member shall ensure that OFS bids/orders on behalf of clients are placed only through personnel who are authorized to operate capital market trading terminals and whose terminal/user details have been duly registered with the relevant Exchange.
Supervisory Oversight: All institutional orders without upfront margin shall be reviewed during the OFS bidding window/trading hours to protect the interest of investors and audit trails and records shall be maintained for all OFS-related activities.
Trading Members are also advised to periodically undertake a comprehensive review of their OFS processes and controls and implement necessary enhancement, wherever required, to ensure effective risk management, operational resilience, investor protection, and compliance with applicable regulatory requirements.
| Contact Nos | Email Id |
|---|---|
| 022-69158540 | |
| 022-45720640 | Bse.inspection@bseindia.com |
| 022-45720440 |
For and on behalf of BSE Ltd.
Richa Ghosh Deputy Vice President Member Oversight
Mehul Desai Manager Member Oversight
