The Securities and Exchange Board of India (SEBI) has planned to relax its regulations to allow employees to apply for shares over the Rs 200,000 limit.
At its meeting in Mumbai, the SEBI approved the suggestion to allow allotment to employees in excess of Rs 2 lakh per employee under employee reservation quota.
"The application for shares of the value in excess of Rs 2 lakh shall be considered as application for additional shares and shall be considered only in the event of under-subscription in the employee reservation portion," the SEBI said in a statement.
As per the regulator, the unsubscribed shares available in employee reservation portion shall be allotted on a proportionate basis to the employees who have applied for the additional shares.
Value of total allotment to an employee under the employee reservation portion shall not exceed Rs 5 lakh.
It also decided to initiate a public consultation on corporate governance issues in compensation agreements in case of listed firms.