Retail investors may get unused staff quota in ... - SIMPLE TAX INDIA

The retail segment was subscribed two times while the employee quota only got 91% subscription. The Coal India IPO, the largest ever in India, had a 10% reservation for employees of the public sector enterprise. After lukewarm response from employees, the unused quota was allocated to other categories on a proportional basis. Similar was the case with other offers including that of NTPC and Manganese Ore. The move may also have been prompted by concerns that employee quota can be manipulated by the management. "There should be a cap of how many shares an employee can subscribe to, to ensure that no employee acts on behalf of the management," said Haldea. The overall cap on employee quota should be equal to the number of employees in a company and cap per individual employee. A panel advising the market regulator SEBI had recommended that the quota be done away with. The move comes close on the heels of another pro- retail investors measure that allowed retail investors to place their bids at the discounted prices in public offers. As much as 50% of the shares on offer is reserved for qualified institutional buyers while 35% for retail investors.


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Software Investor India - Bookshelf

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