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