Query - off market transaction

[BHUMIKA SIDHPURA]

Dear Friends,

 

Can Any one solve my query asap.

 

What is off market transaction.............. is it legal or not?????

 

whether it is regulated by any law or circular or any guildelines by SEBI........

 

Can one shareholder (Benficial -Owner) having demat account purchase or sell shares from or to any other S/H(B.O) or third party ????

 

Is it possiblr if the S/H does not have demat a/c ????

 

Thanks & Regards,

Bhumika

[monika singhal]

Dear Bhumika,

Off market transaction is a transaction of buying or selling shares off market, in literal sense it means buying the shares by not punching the order online s we usually do..

In off market you just have to submit a delivery instruction slip (DIS) to yr Depository participant and he will deliver the shares to the beneficiary named in DIS.

It is absolutely legal.

further about the off market, if the beneficiary dont have a demat account then the physical delivery will take place.

Otherwise you have to mention the Demat account number of beneficiary in it.

Hope it will suffice.

Correct me, if i am wrong.

Regards,

Monika

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CS Monika Singhal
8860703798

[Suresh Kumar Vaishraj]

Dear Friend,

Yes, I agree with Monica ji.

- Generally shares are bought through stock exchanges viz. NSE, BSE etc. Off market transaction is a transaction which takes place out side a stock exchange.

- In case of transfer of d-mat shares, the seller instructs his/ her depository participant (through delivery instruction slip) to transfer specified number of shares to the buyer's d-mat account. In the delivery instruction slip, particulars such as buyers d-mat account, buyers depository participants (DP) ID, number of shares, nature of shares, reason for transfer etc. are stated.

- Then the seller's DP initiates the transfer of shares to buyer's DP and post transfer (which may take a day or two) the shares are reflected in the buyers d-mat account.

- The sale consideration for transfer of shares is mutually settled by the Buyer and Seller.

- Thus in case transfer of shares in demat form both buyer and seller should have d-mat account (but need not to be a trading account)

- When the shares are in physical form, transfer takes place through ordinary share transfer form i.e. form 7B.

Hope this gives enough information about off market transaction.

Thanks and Regards,
Suresh Kumar V
Company Secretary
91-9849991201