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Sebi raises employee quota in public offers to Rs 5 lakh

Press Trust of India  |  New Delhi 

Allowing companies to allot more for their employees during public offers, markets regulator has notified norms to increase the value of such allotments to Rs 5 lakh, up from Rs 2 lakh currently, under staff quota.

The move follows representations requesting Securities and Exchange Board of (Sebi) to relax its regulations to enable employees to apply for beyond the limit of Rs 2 lakh per employee.

Besides, allowed under-subscription in the employee reservation portion to be allotted to employees over and above the extant limit of Rs 2 lakh on a proportionate basis.

The new norms would come under (Issue of Capital and Disclosure Requirements) Regulations, also known as ICDR Regulations.

"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 Rs 2 lakh, subject to the total allotment to an employee not exceeding Rs 5 lakh," Sebi said in a notification made public today.

The Sebi board approved these proposals in September.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 01 2016. 19:43 IST