Minimum subscription for allotment of shares as per Securities and Exchange Board of India (SEBI) guidelines cannot be less than 90\% of which of the following capital?

Question

Alfa Ltd. offered for public subscription 50,000 equity shares of ₹ 10 each at ₹ 110 per share. The entire amount was payable on application. Applications were received for 48,000 shares and allotment was made to all the applicants. The amount received on application will be:

Answer 1

As per SEBI directives, a minimum subscription of 90% of the issued capital is mandatory for share allotment. Issued capital represents the segment of authorized capital made available by a company for public subscription.

Minimum subscription for allotment of shares as per Securities and Exchange Board of India (SEBI) guidelines cannot be less than 90\% of which of the following capital?

Show Hint

The Correct Option is D

Solution and Explanation

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