Question:medium
Minimum subscription for allotment of shares as per Securities and Exchange Board of India (SEBI) guidelines cannot be less than 90% of ________ capital.
Minimum subscription for allotment of shares as per Securities and Exchange Board of India (SEBI) guidelines cannot be less than 90% of ________ capital.
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SEBI’s 90% rule applies to the \textbf{issued capital}, not to nominal or subscribed capital.
Updated On: Feb 9, 2026
- Reserve
- Issued
- Nominal/Registered
- Subscribed
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The Correct Option is B
Solution and Explanation
To validate an allotment, SEBI mandates that a minimum of 90% of the issued capital must be subscribed. This measure safeguards investors and confirms the financial soundness of the offering.Final Answer: Issued
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Top Questions on Issue of Shares
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- The minimum amount of capital which must be subscribed by the public before allotment is called:
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(B) The company has to get minimum subscription within 120 days from the issue of prospectus.
(C) The prospective investors make an application with application money.
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(B) Preliminary expenses payable by the company and any commission payable in connection with the issue of shares;
(C) Working capital;
(D) Any other expenditure required for the usual conduct of business operations
Choose the correct answer from the options given below:- CUET (UG) - 2025
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