Regulation 33 - Reservation on a competitive basis - Securities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018

Reservation on a competitive basis 33. (1) The issuer may make reservations on a competitive basis out of the issue size excluding promoters contribution in favour of the following categories of persons: a) employees; b) shareholders (other than promoters and promoter group) of listed subsidiaries or listed promoter companies. Provided that the issuer shall not make any reservation for the lead manager(s), registrar, syndicate member(s), their promoters, directors and employees and for the group or associate companies (as defined under the Companies Act, 2013 ) of the lead manager(s), registrar and syndicate member(s) and their promoters, directors and employees. (2) The reservations on a competitive basis shall be subject to the following conditions: a) the aggregate of reservations for employees shall not exceed five per cent. of the post-issue capital of the issuer and the value of allotment to any employee shall not exceed two lakhs rupees: Provided that in the event of under-subscription in the employee reservation portion, the unsubscribed portion may be allotted on a proportionate basis, for a value in excess of two lakhs rupees, subject to the total allotment to an employee not exceeding five lakhs rupees. b) reservation for shareholders shall not exceed ten per cent. of the issue size; c) no further application for subscription in the net offer can be made by persons (except an employee and retail individual shareholder) in favour of whom reservation on a competitive basis is made; d) any unsubscribed portion in any reserved category may be added to any other reserved category and the unsubscribed portion, if any, after such inter-se adjustments among the reserved categories shall be added to the net offer category; e) in case of under-subscription in the net offer category, spill-over to the extent of under-subscription shall be permitted from the reserved category to the net offer. (3) An applicant in any reserved category may make an application for any number of specified securities, but not exceeding the reserved portion for that category.