Increasing population and modern lifestyle have raised energy demands globally. Demand Side Management (DSM) is one important tool used to manage energy demands. It employs an advanced power infrastructure along with bi-directional information flow among utilities and users in order to achieve a balanced load curve and minimize demand-supply mismatch. Traditionally, this involves shifting the electricity demand from peak hours to other times of the day in an optimized manner. Multiple users equipped with renewable resources work in coordination with each other in order to achieve mutually beneficial energy management. This, in turn, has generated the concept of cooperative DSM. Such users, called prosumers, consume and produce energy using renewable resources (solar, wind etc.). Prosumers with surplus energy sell to the grid as well as to other consumers. In this paper, a novel Prosumer-based Energy Sharing and Management (PESM) scheme for cooperative DSM has been proposed. A simulation model has been developed for testing the proposed method. Different variations of the proposed methodology have been experimented with different criteria. The results show that the proposed energy sharing scheme achieves DSM purposes in a useful manner.