Reservation on a competitive basis permits targeted allocations in a public issue, with capped employee and shareholder reservations. Reservation on a competitive basis allows issuers to reserve parts of the public issue (excluding promoters' contribution) for employees and qualifying shareholders, subject to exclusions for certain intermediaries. Employee and shareholder reservations are capped by reference to post-issue capital or issue size and individual allotments carry value limits with mechanisms for proportionate allotment and spill-over. Applicants may request up to the reserved portion; reserved-category applicants (except specified retail and employee exceptions) cannot apply in the net offer. Unsubscribed reserved shares may be reallocated among reserved categories or added to the net offer, and net-offer under-subscription may permit spill-over from reserved categories.