POWER TO RELAX STRICT ENFORCEMENT OF THE REGULATIONSSecurities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018
POWER TO RELAX STRICT ENFORCEMENT OF THE REGULATIONSSecurities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018
Reservation on a competitive basis limits allocations for employees and shareholders, controls spill-overs and restricts reapplications. Regulation 254 allows issuers to reserve securities on a competitive basis for employees and certain shareholders, excluding promoters; reservations ... Summary
Reservation on a competitive basis limits allocations for employees and shareholders, controls spill-overs and restricts reapplications.
Regulation 254 allows issuers to reserve securities on a competitive basis for employees and certain shareholders, excluding promoters; reservations exclude allocations to lead managers, registrars, syndicate members and their related persons. Employee reservations are capped by an aggregate percentage of post-issue capital with individual allotment limits and a limited proportional remedy for under-subscription; shareholder reservations are capped by a percentage of the issue size. Reservations prevent further net-offer applications by most beneficiaries, permit inter-category reallocation of unsubscribed portions, and allow spill-over to the net public offer where the net offer is under-subscribed.
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