Supervisory Oversight and Review of Offer for Sale Process
Official title
Supervisory Oversight and Review of Offer for Sale (OFS) Process
Official record
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The National Stock Exchange of India has issued guidelines to strengthen operational controls and risk management for Offer for Sale (OFS) transactions. Trading members must ensure that all terminals used for OFS bidding adhere to the same access, monitoring, and risk management controls as those used in the capital market segment. Furthermore, OFS bids must be placed exclusively by personnel authorized to operate capital market terminals with registered user details. Members are also required to conduct supervisory reviews of institutional orders placed without upfront margin during the bidding window and maintain comprehensive audit trails. Trading members are advised to periodically review their internal processes to ensure compliance and operational resilience.
- Who is affected
- All trading members of the National Stock Exchange of India.
- Required action
- Apply capital market segment access and risk controls to all OFS bidding terminals.
- Ensure only authorized personnel with registered terminal details place OFS bids.
- Review institutional orders without upfront margin during the bidding window and maintain audit trails.
Source details
- Source
- National Stock Exchange of India
- Type
- circular
- Published by source
- 26 Jul 2026
- Document number
- NSE/INSP/75421
- Issuing division
- INSPECTION
- Effective date
- 26 Jul 2026
- Coverage area
- securities
Clean document text
National Stock Exchange of India Limited
Circular
| DEPARTMENT: INSPECTION | |
|---|---|
| Download Ref No: NSE/INSP/75421 | Date: July 27, 2026 |
| Circular Ref. No: 40/2026 |
To All Members,
Sub: Supervisory Oversight and Review of Offer for Sale (OFS) Process
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.
Members are advised to take note of the above and ensure compliance.
National Stock Exchange of India Limited
For and on behalf of National Stock Exchange of India Limited
Kapil Marwah Associate Vice President
In case of any clarifications, Members may contact our below offices:
| Regional Office | CONTACT NO. | E MAIL ID |
|---|---|---|
| Ahmedabad (ARO) | 079-65278024/55 | inspectionahm@nse.co.in |
| Chennai (CRO) | 044- 66309915/17 | inspection_cro@nse.co.in |
| Delhi (DRO) | 011-23459146/127/144/147 | delhi_inspection@nse.co.in |
| Kolkata (KRO) | 033- 40400404/06 | inspection_kolkata@nse.co.in |
| Mumbai (WRO) | 022-61928200 | compliance_wro@nse.co.in |
| Central Help Desk | compliance_assistance@nse.co.in |
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