Question

Match List - I with List - II

List - I	List - II
(A) Over Subscription	(II) Application received is more than shares issued
(B) Minimum subscription	(I) Minimum amount that must be raised by issue of shares
(C) Under Subscription	(IV) Application received is less than shares issued
(D) Private Placement	(III) Allotment of shares without issue of prospectus

Choose the correct answer from the options given above:

• A. (A)-(II), (B)-(I), (C)-(IV), (D)-(II)
• B. (A)-(II), (B)-(I), (C)-(IV), (D)-(III)
• C. (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
• D. (A)-(I), (B)-(II), (C)-(I), (D)-(II)

Hint:

Link each term to the key idea: Over (too many applicants), Under (too few), Minimum (required threshold), and Private (no public prospectus).

Answer 1

The Correct Option is B

Key Terms Explained: \begin{itemize} \item
(A) Over Subscription: This occurs when the number of shares applied for is
more than the number of shares offered for subscription.

Match: (II) \item
(B) Minimum Subscription: As per SEBI guidelines, a company must receive at least 90% of the issued amount (minimum subscription) for a valid issue. It is the
minimum amount that must be raised to proceed with allotment.

Match: (I) \item
(C) Under Subscription: This occurs when the number of shares applied for is
less than the number of shares offered.

Match: (IV) \item
(D) Private Placement: This is when a company issues shares to a select group of investors
without issuing a prospectus, often to avoid public offering costs and regulatory compliance.

Match: (III) \end{itemize} Hence, the correct matching is:

(A)-(II), (B)-(I), (C)-(IV), (D)-(III)