Section 253 in The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
253. Allocation in the net offer.
- [(1)] [Renumbered by Notification No. SEBI/LAD-NRO/GN/2018/57, dated 31.12.2018 (w.e.f. 11.9.2018).] The allocation in the net offer category shall be as follows:(a)not less than thirty five per cent. to retail individual investors;(b)not less than fifteen per cent. to non-institutional investors;(c)not more than fifty per cent. to qualified institutional buyers, five per cent. of which shall be allocated to mutual funds:Provided that the unsubscribed portion in either of the categories specified in clauses (a) or (b) may be allocated to applicants in any other category:Provided further that in addition to five per cent. allocation available in terms of clause (c), mutual funds shall be eligible for allocation under the balance available for qualified institutional buyers.[***] [Omitted 'Explanation' by Notification No. SEBI/LAD-NRO/GN/2018/57, dated 31.12.2018 (w.e.f. 11.9.2018).](2)[ In an issue made other than through the book building process, the allocation in the net offer category shall be made as follows:(a)minimum fifty per cent. to retail individual investors; and(b)remaining to:(i)individual applicants other than retail individual investors; and(ii)other investors including corporate bodies or institutions, irrespective of the number of specified securities applied for;Provided that the unsubscribed portion in either of the categories specified in clauses (a) or (b) may be allocated to applicants in the other category.Explanation. - For the purpose of sub-regulation (2), if the retail individual investor category is entitled to more than fifty per cent. of the issue size on a proportionate basis, the retail individual investors shall be allocated that higher percentage.] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/57, dated 31.12.2018 (w.e.f. 11.9.2018).]
