Securities And Exchange Board Of India - Subsection
Section 42(4) in Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
(4)The reservation on competitive basis shall be subject to following conditions:(a)the aggregate of reservations for employees shall not exceed ten per cent. of the issue size;(b)reservation for shareholders shall not exceed ten per cent. of the issue size;(c)reservation for persons who as on the date of filing the draft offer document with the Board, have business association as depositors, bondholders and subscribers to services with the issuer making an initial public offer shall not exceed five per cent. of the issue size;(d)no further application for subscription in the net offer to public category shall be entertained from any person (except an employee and retail individual shareholder) in favour of whom reservation on competitive basis is made;(e)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 to the public category;(f)in case of under-subscription in the net offer to the public category, spill-over to the extent of under-subscription shall be permitted from the reserved category to the net public offer category.
