Briefly explain 'reservation on competitive basis' under SEBI (ICDR) Regulations 2009. Mention the conditions subject to which the reservation on competitive basis could be made under the above Regulations.

Reservation on Competitive Basis: The term 'reservation on competitive basis' under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, refers to a mechanism where specified securities are allotted in proportion to the number of specified securities applied for in respect of a particular reserved category to the number of specified securities reserved for that category. A 'new issuer' is defined as an issuer which has not completed twelve months of commercial production and whose audited operative results are not available. Conditions for Reservation on Competitive Basis: The reservation on a competitive basis shall be subject to the following conditions: Employees Reservation: The aggregate of reservations for employees shall not exceed five per cent of the post-issue capital of the issuer. Shareholders Reservation: Reservation for shareholders shall not exceed ten per cent of the issue size. Business Associates Reservation: Reservation for persons who, as on the date of filing the draft offer document with SEBI, have a 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. No Further Application in Net Offer: No further application for subscription in the net offer to the public category shall be entertained from any person (except an employee and retail individual shareholder) in favour of whom reservation on a competitive basis is made. Unsubscribed Portion Adjustment: Any unsubscribed portion in any reserved category may be added to any other reserved category. Any unsubscribed portion, if any, after such inter-se adjustments among the reserved categories, shall be added to the net offer to the public category. Spill-over in Under-subscription: 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. Allotment Value to Employees: The value of allotment to any employee in pursuance of reservation made under sub-regulations (1) or (2) of Regulation 4, as the case may be, shall not exceed ₹2 lakh. Single Applicant in Reserved Categories: In the case of reserved categories, a single applicant may make an application for a number of specified securities which exceeds the reservation.