According to recent SEBI clarifications, an off-market sale of unlisted equity shares is not considered a deemed public issue if the number of purchasers in a financial year does not exceed:

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1 August 2026

SEBI rules on off-market share sales

This is a specific regulatory clarification by SEBI, a statutory body, regarding the legal framework for securities transactions, which is directly relevant to the functioning of financial markets and regulatory oversight.

Notes

SEBI has clarified the regulatory status of off-market sales of unlisted equity shares.
Off-market sales conducted through private negotiations are not classified as deemed public issues.
The exemption applies only if the number of purchasers does not exceed 200 persons within a single financial year.
These transactions are categorized as secondary transfers between existing shareholders.
Such transfers do not constitute an offer or invitation by the company to subscribe to securities.

Questions

Discuss the regulatory framework governing the transfer of unlisted equity shares in India. How does the distinction between secondary transfers and public issues impact market transparency and investor protection? 150 words

Attempt this — 150 words in 8 min

0 / 150 words 8:00

Prelims

According to recent SEBI clarifications, an off-market sale of unlisted equity shares is not considered a deemed public issue if the number of purchasers in a financial year does not exceed:

Syllabus

Topics

Sources

SEBI clarifies on off-market sale of unlisted shares

250words.in · https://250words.in/daily/2026-08-01/sebi-rules-on-off-market-share-sales